Samsung Electronics reported a more than 10-fold increase in first-quarter operating profit, driven by the surge in demand for artificial intelligence (AI) technology. The company expects this trend to continue in the second half of 2024, despite potential volatility related to macroeconomic trends and geopolitical issues.
Samsung attributed its nearly doubled memory chip sales in the first quarter to rising prices and the boom in AI technology. 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 96% jump 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. The company has historically been its primary revenue generator, and this swing to a profit of 1.91 trillion won in the first quarter is a testament to its ability to adapt and innovate in response to changing market conditions. As Samsung continues to invest in AI technology and other emerging markets, it is well positioned for long-term success and growth.