Samsung Electronics Co. has reported a staggering 15-fold increase in operating profit for the second quarter, driven by soaring demand for memory chips amid the rapid expansion of artificial intelligence technologies.

The South Korean tech giant announced on Wednesday that its operating profit for the April-June quarter skyrocketed to 10.4 trillion won ($7.5 billion), up from 670 billion won in the same period last year. Consolidated revenues also rose by 23% to 74 trillion won ($53 billion).

According to Samsung, favorable market conditions led to higher average sales prices, while robust sales of organic light-emitting diode (OLED) panels also contributed to the stronger results.

“Driven by strong demand for HBM and conventional DRAM and server SSDs, the memory market continued its recovery,” the company said in a statement.

“This increased demand is a result of continued AI investments by cloud service providers and growing demand for AI from businesses for their on-premise servers.”

Looking ahead, Samsung expects AI servers to take up a larger portion of the market in the second half of the year, as major cloud service providers and enterprises expand their AI investments.

“The memory market is expected to continue its growth momentum, driven by the increasing demand for AI applications,” said a Samsung spokesperson.

“We would continue to invest in cutting-edge technologies to meet the growing needs of our customers