The value of shares of South Korea-based Samsung Electronics reached its highest level since January 2021.
On the morning of Friday, July 5, the securities of the mentioned technology giant rose in price by 2.24%. During trading, the corresponding figure reached 86,500 Korean won ($62.73). On Thursday, July 4, the value of the technology giant’s shares was 84,600 won.
On Friday, Samsung released guidance that forecasted the company’s operating profit for the April-June quarter to reach around 10.4 trillion won. This figure is 1452% higher than the result for the same period last year. The technology giant’s expected operating profit also exceeded LSEG analysts’ estimates. Experts predicted that the corresponding figure for the April-June quarter would reach 8.51 trillion won.
The technology giant also said on Friday that it expects revenue for the mentioned period to range from 73 trillion won to 75 trillion won. During the same period last year, the corresponding figure was 60.01 trillion won. Analysts at LSEG had forecast Samsung’s revenue for the April-June quarter to reach 73.7 trillion won.
The company’s expectations for financial performance, which exceeded preliminary expert estimates, became a catalyst for growth in the value of shares.
Samsung’s business is currently on a recovery trajectory. This dynamic is driven by rising prices for memory chips amid optimism about the prospects for the artificial intelligence industry, which is demonstrating highly intensive development.
Samsung had to face losses last year. In 2023, the so-called echo of the coronavirus pandemic, which became something of a shock to the global economy, was a sensitive factor affecting the global electronics and memory chip market.
Memory microcircuits produced by Samsung are used in many consumer devices, including smartphones and computers.
In April, the technology giant expected demand for artificial intelligence to be driven primarily by consumer interest in generative AI in the near-term prospects. The company also predicted that sales of mobile devices would be stable.
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