Samsung Q1 Profits Surge as AI Spurs Memory Chip Recovery

Samsung Electronics has seen a significant surge in operating profit for the first quarter of 2024, reaching 6.61 trillion Korean won ($52.3 billion), a tenfold increase from the previous year's same period. The leap in profits is primarily attributed to a rebound in memory chip prices and robust sales of the Galaxy S24 smartphone. The semiconductor division of the company, which began mass production of V9 NAND, achieved an operating profit of 1.91 trillion won, marking a turnaround after five consecutive quarters of operating losses.

The company's overall revenue also increased by nearly 13% to 71.9 trillion won, buoyed by the demand for high-end chips and the effects of artificial intelligence (AI) optimism on the memory chip market. Despite this growth, Samsung anticipates a slight dip in profitability for the second quarter, citing seasonal declines in demand. However, the outlook for the memory chip business remains positive, as Samsung expects the market to continue to strengthen, driven by the expansion of generative AI technologies and the resulting increase in demand for both conventional and advanced AI-processing chips. Additionally, Samsung plans to extend AI features to other high-end mobile devices, capitalizing on the strong consumer response to the Galaxy S24's AI capabilities.