Samsung increased its profit 10 times in the first quarter of 2024 thanks to artificial intelligence
In its financial report for the first quarter of 2024, Samsung announced that the company’s operating profit increased by 932.8 percent.
Samsung released its financial report for the first quarter of 2024 and announced a 10-fold increase in operating profit. The South Korean tech giant says its memory chip sales have doubled from the previous year, driven by the boom in artificial intelligence in the market.
According to CNBC, Samsung Electronics announced that in the first quarter of 2024, it faced a 932.8% growth in its operating profit and exceeded expectations by earning $4.8 billion. Also, the income of this company in the first quarter of this year was 12.81% more than last year.
Significant increase in Samsung profit in the first quarter of 2024
Samsung said operating profit for its semiconductor business was $1.38 billion, the first time since the fourth quarter of 2022. The company predicts that the memory chip market will be booming in the coming months as well; Because many technologies based on productive artificial intelligence are under development.
To meet the needs of the artificial intelligence market, Samsung recently started mass production of HBM3E 8H and V9 NAND memory chips. The company also plans to start mass production of HBM3E 12H products in the second quarter of 2024. Samsung says that the development of the 3 and 2 nm processes is also progressing well. Mass production of the company’s 2nm chips is expected to begin in 2025.
“Business conditions are expected to remain positive in terms of demand in the second half of 2024, particularly around generative AI,” Samsung said in a statement. In the smartphone business, it is also said that Samsung will continue to promote the Galaxy S24 series with artificial intelligence capabilities.
Considering Samsung’s fourth quarter 2023 financial report saw its weakest annual profit in a decade, this turnaround and increased profit margin is a promising development for the South Korean tech giant.
