Samsung Electronics reported a more than 10-fold rise in first-quarter operating profit, and the company attributed this to the booming demand for artificial intelligence. This increase in demand is expected to drive sales of memory chips and tech devices. Samsung stated that in the second half of 2024, generative AI will continue to hold strong despite potential volatility related to macroeconomic trends and geopolitical issues.
Despite a downturn caused by weak post-pandemic demand, Samsung’s chip division swung to a profit of 1.91 trillion won in the first quarter, reflecting the strong recovery in memory chip sales. The chip division has historically been Samsung’s primary revenue generator, and its strong performance in the first quarter signals a positive outlook for the company moving forward. 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.