Samsung Electronics has forecast a 19-fold jump in its second-quarter operating profit from a year earlier. The company estimates operating profit for April-June at 89.4 trillion won ($58.44 billion), surpassing an LSEG SmartEstimate of 87.3 trillion won and analyst expectations of around 86 trillion won. This is a sharp increase from the 4.7 trillion won reported a year ago.
Revenue is expected to rise 129% to 171 trillion won. This quarterly forecast is so significant that it surpasses the company's combined earnings over the past three years. Samsung is expected to release detailed results, including a breakdown of earnings for each of its business divisions, later this month.
The surge is driven by rocketing demand for memory chips needed in AI data centers, as well as climbing DRAM and NAND prices. Demand for semiconductors continues to outstrip supplies, which has pushed up prices and led to record-breaking sales for the world's largest memory chipmaker.
These strong results are likely to help ease recent market concerns about the sustainability of AI computing-capacity spending.