Samsung Electronics announced a strong outlook for the second half of the year, driven by the growing demand for artificial intelligence technology. The company predicted that this demand would lead to increased sales of memory chips and tech devices in the coming months. This news came as Samsung reported an impressive more than 10-fold increase in first-quarter operating profit.
Samsung noted that business conditions are expected to remain positive in the second half of the year, with demand for generative AI leading the way. The surge in memory chip sales in the first quarter was attributed to rising prices and strong demand, particularly in the field of AI technology.
In the January-March quarter, Samsung’s operating profit jumped significantly from 640 billion won a year earlier to 6.6 trillion won. This figure was consistent with Samsung’s earlier estimate, marking the highest operating profit since the third quarter of 2022. Despite facing challenges related to macroeconomic trends and geopolitical issues, Samsung’s chip division saw a remarkable turnaround in the first quarter. The division, which historically accounted for a significant portion of the company’s operating profit, swung back to profitability with 1.91 trillion won in profit compared to a 4.58 trillion won loss a year earlier. Overall, Samsung reported a 13% increase in revenue for the first quarter, reaching 71.9 trillion won. The company saw an impressive 96% increase in memory chip revenue that totaled 17.49 trillion won, signaling a strong recovery from recent years’ memory chip downturn
