Samsung Electronics anticipates a remarkable surge in profits for the first quarter of 2024, projecting a tenfold increase compared to the same period last year. The surge follows a recovery in chip prices and escalating demand for artificial intelligence (AI)-related products. As the world’s leading producer of memory chips, smartphones, and televisions, the South Korea-based conglomerate is poised to unveil its detailed financial report on April 30th.
The technology giant estimated an operating profit of 6.6 trillion won ($4.9bn; £3.9bn) for January to March, marking a staggering 931% surge from the previous year, surpassing analysts’ expectations. This substantial growth is attributed to the resurgence in semiconductor prices globally after a significant downturn. Over the past year, global memory chip prices have ascended by approximately twenty percent, with Samsung’s semiconductor division serving as a primary revenue driver.
Amid expectations of sustained robust demand for semiconductors fueled by the burgeoning AI landscape, external factors like the recent earthquake in Taiwan could potentially tighten chip supply globally, consequently enabling Samsung to implement further price hikes. Taiwan, housing major chip manufacturers such as TSMC, a key supplier to industry giants like Apple and Nvidia, experienced disruptions to its operations following the seismic event on April 3rd.
In addition to semiconductor gains, Samsung’s projected profit surge is poised to be buoyed by the release of its latest flagship Galaxy S24 smartphones, unveiled in January. With an evolving technological landscape and promising market conditions, Samsung Electronics stands poised for significant financial gains in the first quarter of 2024, underscoring its robust position in the global technology arena.
