AI chip boom lifts Samsung profits by 1,800%

South 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 on Tuesday ahead of its full results due later in July, comes as demand for semiconductors continues to outstrip supplies - which has pushed up prices.

Samsung said in its preview, known as earnings guidance, that it brought in around 171tn won of sales during the quarter, more than double the amount for the same period last year.

The company's projected earnings mark one of "the best quarterly performances ever", which was close to the tech sector record set by Nvidia earlier this year, said industry analyst Marc Einstein from Counterpoint Research.

"This has everything to do with the AI boom as memory companies continue to ride a tidal wave driven by limited supply and unprecedented demand," he added.

Samsung is one of the world's biggest semiconductor manufacturers, making chips for firms like Nvidia and Google. The shares major tech firms have 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 strong performance of both firms has helped lift the value of South Korea's benchmark share index, the Kospi, by more than 80% this year.