Samsung Electronics’ blowout first quarter has eased investor concerns that a new Google algorithm might threaten the AI-driven boom in South Korea’s memory chip industry.
Citing an “unprecedented supercycle” in the memory chip market, Samsung this week estimated higher profits in a single quarter than in the whole of last year, with no sign that memory was becoming less of a bottleneck for AI companies.
The earnings guidance sent Samsung shares close to all-time highs and eased two weeks of anxiety sparked by TurboQuant, a technology outlined in a Google Research blog post in late March, which promises to drastically reduce the amount of memory required for AI.
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