Samsung Expects Strong Demand for AI Drives Sales of Memory Chips and Devices in the Second Half of the Year

In the second half of the year, Samsung Electronics expects to see strong demand for artificial intelligence continue to drive sales of memory chips and tech devices, according to the company. This optimistic outlook comes after Samsung reported a more than 10-fold increase in first-quarter operating profit. 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.

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 a 96% increase in memory chip revenue, which totaled 17.49 trillion won.

Looking ahead to the second half of the year, Samsung predicts that business conditions will remain positive, with demand for generative AI leading the way. The company expects this demand to drive further growth in its chip business and contribute to its overall financial performance.