Samsung Electronics reported a more than 10-fold increase in first-quarter operating profit, fueled by strong demand for artificial intelligence, memory chips, and tech devices. The company’s memory chip sales nearly doubled in the first quarter, thanks to the surge in AI.
Despite potential volatility from macroeconomic trends and geopolitical issues, Samsung is optimistic about business conditions moving forward. The company expects demand for AI to remain strong in the second half of the year, particularly around generative AI.
The operating profit for January-March rose to 6.6 trillion won, marking the highest operating profit since the third quarter of 2022. This signals a recovery from the memory chip downturn caused by weak post-pandemic demand.
The chip division, which historically accounted for two-thirds of Samsung’s operating profit, swung to a profit of 1.91 trillion won in the March quarter. First-quarter revenue increased by 13% to 71.9 trillion won, with memory chip revenue seeing a significant 96% increase to 17.49 trillion won.
Overall, Samsung Electronics is confident in its performance and outlook, driven by strong demand for AI, memory chips, and tech devices.
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