Samsung Electronics’ profit surges after AI boom reverses its chip losses

Samsung Electronics Co. topped analyst earnings estimates after its semiconductor division returned to profitability, as companies like Microsoft Corp. and Alphabet Inc. led a surge in spending on artificial intelligence services.

The world’s largest memory chipmaker reported net income of 6.62 trillion won ($4.8 billion) in the March quarter, versus the average analyst projection for 5.63 trillion won. That’s more than four times the company’s earnings a year earlier.

The results underscore how demand for the memory chips that power modern electronics and artificial intelligence is starting to rebound after a severe downturn. The company’s shares rose as much as 2.4 per cent in Seoul trading.