Samsung Electronics announced its optimistic outlook for the second half of the year, as demand for artificial intelligence remains strong. The company predicted that this demand would drive sales of memory chips and tech devices in the coming months. This announcement came as Samsung reported a more than 10-fold increase in first-quarter operating profit.
In the January-March quarter, Samsung’s operating profit jumped to 6.6 trillion won, up significantly from 640 billion won in the same period a year earlier. 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.
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. 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. Overall, Samsung reported a 13% increase in revenue for the first quarter, reaching 71.9 trillion won