In the first quarter of 2024, Samsung Electronics reported a more than 10-fold rise in operating profit, with demand for artificial intelligence expected to remain strong in the second half. This is expected to drive 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 hold 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.
In addition to the surge in chip sales, 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 in the first quarter reflects its position as a dominant player in the memory chip and tech device market.
The surge in demand for generative AI is anticipated to drive sales of memory chips and tech devices in the second half of 2024, despite potential volatility related to macroeconomic trends and geopolitical issues. Samsung’s strong performance in Q1 reflects its position as a dominant player in both memory chip and tech device markets.
Samsung Electronics reported a more than tenfold increase in first-quarter operating profit thanks largely due to rising prices and booming demand for artificial intelligence technology.
The company attributed nearly double memory chip sales during this period primarily due to increasing prices and growing demand from AI technology.
In Q2 of next year (2025), it is projected that demand for generative AI will remain robust despite potential economic uncertainty or geopolitical instability.
Operating profits have increased significantly from January-March compared with Q3 last year (from KRW640 billion ($588 million) KRW6.6 trillion ($57 billion)).
The semiconductor division recorded its highest earnings ever at KRW1.91 trillion ($17 billion).
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