- Samsung Electronics expects strong demand for AI technology, driving growth in the second half of the year.
- The company reports a significant tenfold increase in first-quarter profit, fueled by soaring demand for memory chips.
- Samsung remains optimistic about sustained growth despite potential economic fluctuations, emphasizing its commitment to harnessing opportunities in the AI sector.
Samsung Electronics is bullish about the future demand for artificial intelligence (AI) technologies, projecting a prosperous outlook for the latter half of the year. The South Korean tech giant, known for its memory chips and cutting-edge devices, witnessed a remarkable surge of over tenfold in its first-quarter operating profit. This buoyancy in financial performance was driven by soaring demand for memory chips, attributed to the burgeoning AI sector.
Samsung expressed confidence in positive business conditions for the remainder of 2024, primarily driven by robust demand, especially in the realm of generative AI. Despite potential fluctuations due to macroeconomic dynamics and geopolitical tensions, the company remains optimistic about sustained growth. Market response to Samsung’s outlook was immediate, with a surge in its shares during morning trading. The operational success materialized with Samsung’s operating profit soaring to 6.6 trillion won ($4.8 billion) in the January-March period, marking its highest operating profit since the third quarter of 2022.
The memory chip segment, crucial to Samsung’s profitability, rebounded impressively, reporting a profit of 1.91 trillion won in the March quarter, driven by strategic customer investments in anticipation of future price hikes. Concurrently, Samsung announced the commencement of mass production for its latest high bandwidth memory (HBM) chips tailored for generative AI chipsets, underscoring its commitment to harnessing the opportunities presented by the AI revolution. Despite headwinds faced by its mobile devices business, Samsung remains poised for growth, leveraging AI-driven demand and technological advancements.
