Samsung reports enormous jump in profit on AI boom

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Samsung reports enormous jump in profit on AI boom
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Samsung Electronics forecast demand for artificial intelligence would hold strong and tighten supply of some high-end chips, joining rivals in benefiting from a solid rebound in the battered global memory chip market.

The upbeat outlook from the world’s largest memory chip maker sent its shares 1.8% higher on Tuesday after it reported a more than 10-fold rise in first-quarter operating profit. But so far this year Samsung shares are down 0.8%, lagging SK Hynix’s 24% gain, as it seeks to catch up with its smaller rival in the supply of top-end chips such as high bandwidth memory to AI leader Nvidia .

Samsung also said it will step up offerings of high-end solid-state drive products to meet AI server demand, and expected high-end memory chip supply to become tighter toward year-end due to capacity being focused on HBM, echoing comments from SK Hynix last week. Jump in operating profit The South Korean company’s first-quarter revenue rose 13% to 71.9 trillion won , including a 96% increase in memory chip revenue to 17.

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