AI frenzy expected to have boosted Samsung Q2 profit 13-fold

Samsung Electronics is expected to post a 13-fold increase in second-quarter profit from a year earlier as demand for artificial intelligence technology fuels a rebound in memory chip prices.

Operating profit for the world's biggest maker of memory chips, smartphones and TVs likely rose to 8.8 trillion won ($6.34 billion) in the quarter ended June 30, according to the average of an LSEG SmartEstimate from 27 analysts, weighted toward those who are more consistently accurate.

That amount would be Samsung's highest profit since the third quarter of 2022. It compares with an operating profit of 670 billion won in second quarter of last year.

Performance at the tech giant's key semiconductor division likely continued to improve its second consecutive quarterly profit, as memory chip prices keep rising from a mid-2022 to end-2023 trough that was caused by weak post-pandemic demand for gadgets that use the chips.