Samsung Electronics reported a more than 10-fold increase in first-quarter operating profit and expects demand for artificial intelligence to remain strong in the second half. The surge in sales of memory chips and tech devices is anticipated to be driven by the boom in AI technology. In the second half of 2024, Samsung stated that it expects demand for generative AI to hold strong despite potential volatility related to macroeconomic trends and geopolitical issues.
Samsung’s first-quarter operating profit 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 jump of 96% 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.