Samsung Electronics Reports Staggering 10-Fold Increase in First-Quarter Operating Profit, Forecasts Continued Growth in AI Demand

Samsung Electronics has reported a significant increase in first-quarter operating profit, with a more than 10-fold rise from the previous year. The company attributed this growth to the surge in demand for artificial intelligence (AI) and expects this trend to continue in the second half of 2024.

Samsung’s chip division saw a remarkable turnaround, swinging to a profit of 1.91 trillion won in the first quarter after historically being Samsung’s primary revenue generator. This is largely due to rising prices and the boom in AI technology. In addition, 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.

In the second half of 2024, Samsung anticipates that demand for generative AI will remain strong despite potential volatility related to macroeconomic trends and geopolitical issues. The company’s position as a dominant player in the memory chip and tech device market reflects its strong performance in the first quarter. Overall, Samsung Electronics’ solid first-quarter results indicate that it remains well-positioned for continued growth and success in the industry.