AI Hardware

Samsung and AMD earnings got a boost from the AI boom

Samsung and AMD both beat Wall Street's expectations as demand for AI chips remains strong.

By Priya Khosla August 1, 2024

Samsung reported revenue of almost 74.1 trillion won, or about $54 billion, for the second quarter of 2024 — a 23.42% increase from the previous year. The company reported operating profit of 10.44 trillion won, or $7.6 billion — a whopping 1,458.2% year-over-year jump.

Strong demand for the company’s high-bandwidth memory (HBM) chips and other memory chips drove results, Samsung said. Investments in AI by cloud service providers as well as growing business demand for AI servers are increasing demand for the company’s chips. Samsung said it expects strong demand for AI servers in the second half of the year as these investments continue.

Meanwhile, U.S.-based Advanced Micro Devices (AMD) also beat Wall Street’s expectations in its earnings results, reporting revenue of $5.8 billion for the second quarter of 2024. The “strong revenue and earnings growth” was “driven by record Data Center segment revenue,” AMD chair and chief executive Lisa Su said. Data center revenue was $2.8 billion for the quarter — up 115% from the previous year. AMD’s new AI chips are set to rival those from Nvidia.

“Our AI business continued accelerating and we are well positioned to deliver strong revenue growth in the second half of the year led by demand for Instinct, EPYC and Ryzen processors,” Su said.

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