Samsung Electronics has reported a staggering 10-fold increase in operating profit for the last quarter, driven by the expansion of artificial intelligence technologies and a rebound in the markets for computer memory chips.
The South Korean semiconductor and smartphone giant announced that its operating profit for the Jan-March quarter reached 6.6 trillion won ($4.8 billion), a significant jump from the 640 billion won ($465 million) it earned during the same period last year. Revenue also saw a nearly 13% increase to 71.9 trillion won ($52 billion), fueled by higher prices for memory chips and strong sales of its flagship Galaxy S24 smartphones.
The company’s semiconductor business contributed 1.91 trillion won ($1.38 billion) in operating profit, marking its first quarterly profit since the fourth quarter of 2022. This positive performance comes as the chip market continues to recover from the impact of the COVID-19 pandemic and global trade tensions.
Samsung projected that the memory chip market will remain robust in the coming months, driven by the expansion of generative AI technologies. The company emphasized that demand for both conventional chips used in servers and advanced chips designed for AI processing, including high-bandwidth memory, is on the rise.
Looking ahead, Samsung stated that business conditions are expected to remain positive in the second half of 2024, with strong demand for generative AI technologies despite potential volatility from macroeconomic trends and geopolitical issues. Additionally, the company will focus on boosting sales of its AI-enabled Galaxy S24 smartphone, which offers features like live translation during phone calls in multiple languages and dialects.