Samsung Electronics reported a 10-fold increase in first-quarter operating profit and expects strong demand for artificial intelligence to continue driving sales of memory chips and tech devices. The company attributed the nearly doubled memory chip sales in the first quarter to rising prices and the boom in AI technology.
Samsung stated that in the second half of 2024, demand for generative AI is expected to remain strong despite potential volatility related to macroeconomic trends and geopolitical issues. The operating profit for January-March rose to 6.6 trillion won, from 640 billion won a year earlier, hitting its highest level since the third quarter of 2022. The chip division, which has historically been Samsung’s primary revenue generator, swung to a profit of 1.91 trillion won in the first quarter.
The surge in chip sales was not the only factor contributing to Samsung’s strong performance in the first quarter. First-quarter revenue increased by 13% to 71.9 trillion won, with memory chip revenue seeing a significant 96% jump to 17.49 trillion won. This recovery from a memory chip downturn caused by weak post-pandemic demand signals a positive outlook for the company moving forward. Samsung’s strong performance reflects its position as a dominant player in the memory chip and tech device market.
Overall, Samsung’s ability to adapt to changing market conditions and capitalize on emerging technologies has positioned it as one of the leading players in the electronics industry today.
