Samsung predicts 13 times more profit: Stock price hits three-year high

Samsung Electronics has announced an expected 13-fold increase in profit for the second quarter. The company's operating profit for the second quarter of 2024 is expected to reach $6.34 billion, compared to $486 million a year earlier. Against this backdrop, the company's share price rose 2.24% to 84,600 won, the highest price in three years.

The primary driver of this profit growth is the improved performance of Samsung's semiconductor division, which is expected to generate $3.34 billion in profit in the second quarter of 2024, compared to a loss of $3.15 billion for the same period last year.

The increased demand for high-performance DRAM chips, especially those used in artificial intelligence (AI) applications, has fueled this growth. DRAM chip prices have surged by 13-18%, and NAND Flash chips, used for data storage, have risen in price by 15-20%.

Despite the overall profit growth, Samsung's mobile business is experiencing a downturn. The operating profit of this division for the second quarter is expected to be $1.6 billion, down from $2.21 billion a year earlier. This decline is attributed to higher component and marketing costs, as well as investments in the development of AI services. The number of smartphones shipped remained at last year's level.

Samsung plans to unveil its latest flagship foldable phones, the Galaxy Z Fold 6 and Galaxy Z Flip 6, along with new mobile accessories, on July 10 in Paris. The company is also introducing the new Galaxy Ring for health monitoring.

Samsung is expected to release a detailed earnings report at the end of the month.