Samsung Eyes Record Profit on AI-Driven Chip Demand

The tech conglomerate's revenue is expected to more than double to 171.442 trillion won compared to the same period last year. While the stock price doubled earlier this year amid the artificial intelligence frenzy, shares have faced recent downward pressure in July. Investors remain cautious, weighing the sustainability of aggressive AI spending against potential risks of excess computing capacity.

Beyond the headline figures, market watchers are scrutinizing internal costs that might dampen the bottom line. Samsung has earmarked a significant provision for employee bonuses within its semiconductor division, a move analysts suggest would have otherwise pushed earnings even higher. This allocation follows a May agreement to distribute 10.5% of the division's annual operating profit as performance incentives. With the semiconductor arm already delivering a record 53.7 trillion won in the first quarter, the company is doubling down on its infrastructure. A planned 400 trillion won investment toward a new manufacturing hub in southwestern South Korea underscores a long-term strategy to cement its dominance in the AI hardware supply chain.