Samsung Electronics reported a 10-fold increase in first-quarter operating profit, driven by the demand for artificial intelligence. The company expects this trend to continue in the second half, leading to sales of memory chips and tech devices. Samsung attributed the nearly doubled memory chip sales in the first quarter to rising prices and the boom in AI technology.
In the second half of 2024, Samsung stated that generative AI is expected to remain strong despite potential volatility related to macroeconomic trends and geopolitical issues. This will continue to drive demand for memory chips and tech devices. 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 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.