As the global memory chip market continues its rebound fueled by the AI boom, Samsung said on Friday in its preliminary earnings guidance that it estimates an operating profit of 10.4 trillion won in the quarter, an increase of 1,452% from a year ago. The South Korean tech giant also projected revenue to grow 23.31% over the same period to 74 trillion won.

The profit surge continues thanks to Samsung's turnaround in its chip division that started in Q1, in which the company saw operating income jump 900% from a year ago. The chip division's return to profitability after five quarters in the red directly contributed to that jump.

In Q2, the company's chip division is expected to have done the heavy lifting, contributing approximately half or more of the operating income, according to South Korean analysts.

DRAM and NAND prices have been on a steady climb since late last year. DRAM used in data centers and in particular, high-bandwidth memory (HBM), is in especially high demand thanks to AI.

Meanwhile, Samsung's smartphone business unit is expected to have contributed approximately 2 trillion won out of the operating income total. The company is set to publish its full earnings report at the end of the month.

Also: What to expect from Samsung Unpacked Summer 2024: Galaxy Z Fold 6, Watch 7, Smart Ring, more

The strong second quarter performance, its best in two years, will no doubt raise morale at Samsung after a dismal 2023.

It should only continue to get better. Demand for HBM is expected to be strong through the year, and the company has a deal with Nvidia on the horizon. Samsung has also said it is planning to start mass production of HBM3E in Q3. Additionally, Samsung is set to unveil its new foldables next week, which could give its earnings a further boost.

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