Samsung's Net Profit Soars on Semiconductor Business Strength

By Kwanwoo Jun

Samsung Electronics said that its net profit rose nearly six times in the second quarter, with its semiconductor business generating more than half of overall operating profit.

The strong quarterly results from the world's largest memory-chip and smartphone maker are the latest sign that chip demand remains robust, fueled by the artificial-intelligence boom, and continues to drive the South Korean technology giant's earnings recovery.

Net profit soared to 9.841 trillion won, equivalent to $7.11 billion, from 1.724 trillion won a year earlier, the company said Wednesday. Profit rose 46% from the previous quarter.

That beat a FactSet-compiled consensus estimate of 8.228 trillion won.

Revenue for the quarter rose 23% to 74.068 trillion won and operating profit increased almost 16-fold to 10.444 trillion won, largely in line with the company's preliminary estimates.

The company's chip-making business posted 6.450 trillion won in operating profit for the period, accounting for about 62% of its total quarterly operating income.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

(END) Dow Jones Newswires

July 30, 2024 20:25 ET (00:25 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.