Samsung estimates 10-fold rise in its Q1 profit as chip prices recover

Samsung Electronics estimated on Friday its first-quarter operating profit would rise more than 10-fold, topping market expectations, as chip prices have started to rebound from a severe downturn thanks to a boom in artificial intelligence.

But the guidance was not enough to cheer investors who sent Samsung shares down 1.3 per cent early on Friday, in line with a 1.1 per cent drop in the wider South Korean market, as they await updates on progress in its high-end memory chip business that has been lagging behind rivals.