Samsung Electronics Surges in First-Quarter Profits, Driven by AI Demand and Booming Memory Chip Sales
Samsung Electronics has reported a more than 10-fold increase in first-quarter operating profit and announced optimism for the second half of the year, driven by strong demand for artificial intelligence. The company predicted that this demand would drive sales of memory chips and tech devices in the coming months.
Despite facing challenges related to macroeconomic trends and geopolitical issues, Samsung’s chip division saw a remarkable turnaround in the first quarter. The division, which historically accounted for a significant portion of the company’s operating profit, swung back to profitability with 1.91 trillion won in profit compared to a 4.58 trillion won loss a year earlier.
The surge in memory chip sales in the first quarter was attributed to rising prices and strong demand, particularly in the field of AI technology. Samsung noted that business conditions are expected to remain positive in the second half of the year, with demand for generative AI leading the way.
In the January-March quarter, Samsung’s operating profit jumped to 6.6 trillion won, up significantly from 640 billion won in the same period a year earlier. This figure was consistent with Samsung’s earlier estimate, marking the highest operating profit since the third quarter of 2022. Overall, Samsung reported a 13% increase in revenue for
