Samsung’s Earnings Skyrocket by 1000% as AI Fuels Memory Chip Market Revival

  • Editor
  • May 7, 2024
    Updated
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In a stunning financial turnaround, Samsung Electronics announced on Tuesday that its operating profit had increased tenfold in the last quarter, a revival largely driven by the burgeoning field of Artificial Intelligence technologies. The surge is breathing new life into the global market for computer memory chips.

For the first quarter running from January to March, the tech behemoth recorded an operating profit of 4.8 billion, a dramatic rise from the $465 million reported during the same period in the previous year. This boost in profit accompanies a near 13% increase in revenue, which soared to $52 billion.

Here’s how critics have reacted to the news:

The company attributed this revenue growth to heightened chip prices and strong sales of its latest smartphone, the Galaxy S24. This model has quickly become a flagship offering, thanks to its advanced features and high market demand.

Samsung’s semiconductor business, a critical segment of its operations, reported $1.38 billion won in operating profit. This marks a significant recovery for the division, which has faced a challenging market environment exacerbated by the COVID-19 pandemic and ongoing global trade issues.

Industry experts attribute this rebound primarily to the rapid expansion of AI technologies. These technologies require robust computing power, thus driving demand for both traditional server chips and more advanced AI-specific chips, including high-bandwidth memory (HBM).

In response to this demand, Samsung has initiated mass production of its cutting-edge 8-layer HBM3E chips and plans to introduce a 12-layer version later this year.

Looking forward, Samsung is optimistic about the market outlook:

In the second half of 2024, we anticipate that the business climate will remain favorable.

The demand for AI-related technologies is likely to stay strong, although we remain cautious about the ongoing economic fluctuations and geopolitical concerns,” a spokesperson for Samsung stated.

On the smartphone front, Samsung is not resting on its laurels with the Galaxy S24. The company plans to further integrate AI into its other mobile devices, anticipating that these enhancements will spur growth in the smartphone sector as global consumer spending recovers.

The Galaxy S24 is particularly noted for its AI-driven features, such as live translation during calls in multiple languages and dialects, setting a new standard in smartphone functionality and user experience.

Here’s what users have got to say about this:


With these strategic moves, Samsung is clearly positioning itself at the forefront of the AI revolution, signaling a promising future for both its memory chip production and smartphone innovations.

To find out more for the latest and most exciting AI News, visit www.allaboutai.com.

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Dave Andre

Editor

Digital marketing enthusiast by day, nature wanderer by dusk. Dave Andre blends two decades of AI and SaaS expertise into impactful strategies for SMEs. His weekends? Lost in books on tech trends and rejuvenating on scenic trails.

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