Samsung Electronics saw a surge in its stock price after projecting better-than-expected profit for the second quarter of the year. The South Korean tech giant attributed this positive outlook to the high demand for artificial intelligence. Samsung's shares reached their highest level since January 2021, climbing as much as 2. 24% to 86, 500 Korean won ($62. 73). The company's guidance stated that operating profit for the April to June quarter is expected to be around 10. 4 trillion won ($7. 54 billion), marking a significant increase of 1, 452% from the previous year. In terms of revenue, Samsung anticipates a range of 73 trillion to 75 trillion won, compared to 60. 01 trillion won in the same period last year.

These figures align with estimates provided by analysts. The boost in business comes as memory chip prices have recovered, particularly due to the optimistic outlook for AI. Samsung, as the world's largest memory chip maker, suffered significant losses in 2023 as the industry faced a decline in demand for memory chips and electronics following the Covid-19 pandemic. The memory chips produced by Samsung are widely used in various consumer devices such as smartphones and computers.