Samsung Shares Hit Three Year Unexpected High

(AmericanProsperity.com) – The huge demand for artificial intelligence has helped Samsung Electronics shares skyrocket to a three-year high that was completely unexpected. The stock climbed over two percent and traded at over eighty-six thousand Korean Won, or over sixty U.S. dollars.

Samsung said that they expected their operating profit for this last quarter would be over ten trillion won. This is 1,452% higher than the six hundred billion won it was worth one year ago.

Samsung was in a post-COVID slump, which brought their numbers lower than they expected, but the jump in demand for artificial intelligence and AI chips has helped push the company numbers back into the lead. Samsung announced that its second-quarter revenue would be driven by artificial intelligence.

They’ve leaned into that as they recently came out with their Galaxy S24 Ultra smartphone, equipped with features to search the web and edit photos just by using AI.

SK Kim, executive director of Daiwa Capital Markets said, “Samsung announces earnings surprise but mainly the earnings upside is from memory price high. So ironically, Samsung is lagging behind in high-bandwidth memory production. So supply to Nvidia –the qualification – has been delayed.”

There is a report that says Samsung has yet to get qualified to use Nvidia’s AI chips even though Nvidia is said to be the future supplier of Samsung’s HBM chips. Despite delays, Samsung says that the conversations with partners for HBM supply are “on track.”

Said Kim, “But despite the delay, the company announces earning surprise is driven by the memory price high.”

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