Samsung Electronics posted its fastest pace of sales and profit growth in years, reflecting a recovery in memory chip demand as AI development accelerates globally.
Both DRAM and NAND prices were lifted by demand for AI servers and enterprise data storage, helping to reverse inventory valuation losses, said Sanjeev Rana, an analyst at CLSA Securities Korea. Samsung’s foundry, or contract chipmaking, operations also got a boost from improved IT demand, he said. Samsung is slated to announce final earnings with divisional breakdowns on July 31. While the company is benefiting from a broader industry recovery, investors remain concerned about its market position in the newer field of AI chips against SK Hynix.
Samsung is unveiling results days before union organizers plan to stage a three-day walkout among its 28,000-plus members — including at key chip plants — over a pay dispute. The proposed action follows a strike involving a small number of staff last month that was the first in the company’s 55 years. It’s unclear for now how many employees intend to participate in Monday’s walkout.