AI chip boom lifts Samsung profits by 1,800%

Key developments are emerging from the global stage. AI chip boom lifts Samsung profits by 1,800%Image source, Bloomberg via Getty ImagesImage caption, Samsung is one of the world's leading smartphone makersByOsmond ChiaBusiness reporterPublished13 minutes agoSouth Korean technology giant Samsung Electronics says it expects to post a 19-fold jump in its profits, driven by global demand for artificial intelligence (AI) memory chips. The company forecast that it made 89tn won (£44bn; $58bn) between the start of April and the end of June, marking its third record quarterly operating profits in a row.

Major South Korean firms like Samsung release forecasts of their earnings ahead of official detailed reports to help guide investors. Samsung's latest forecast, released ahead of its full results due later in July, comes as demand for semiconductors continues to outstrip supplies - which has pushed up prices.

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Samsung is one of the world's biggest semiconductor manufacturers, making chips for firms like Nvidia and Google. The shares major techhave soared in recent months due to surging demand for chips.

Shares in Samsung have more than doubled in price since the start of this year, while South Korean rival SK Hynix has jumped by more than 200%.

The story has become one of the most prominent items on the global agenda.