Samsung Electronics reported a 10-fold increase in operating profit in the first quarter and expects demand for artificial intelligence to remain strong in the second half. The chip division, historically Samsung’s primary revenue generator, swung to a profit of 1.91 trillion won in the first quarter, while memory chip revenue posted a significant jump of 96% to 17.49 trillion won.
In addition to the increase in chip sales, first-quarter revenue rose 13% to 71.9 trillion won, with memory chip revenue posting a significant jump of 96% to 17.49 trillion won. This recovery from the memory chip slump caused by weak post-pandemic demand signals a positive outlook for the company going forward. Samsung’s strong performance in the first quarter reflects its position as a dominant player in the market for memory chips and technology devices.
Samsung attributed the nearly doubling of memory chip sales in the first quarter to rising prices and a boom in AI technology. The company said that in the second half of 2024, demand for generative artificial intelligence is expected to remain strong despite potential volatility related to macroeconomic trends and geopolitical issues. Operating profit for the January-March period rose to 6.6 trillion won, from 640 billion won a year earlier, reaching the highest level since the third quarter of 2022.