Samsung Electronics projects an astonishing increase in its profits for the first quarter of 2024, forecasting a tenfold rise from the same period the previous year. This anticipated growth is attributed to chip prices’ recovery from a post-pandemic decline and a surge in demand for products related to artificial intelligence (AI).
As the leading global manufacturer of memory chips, smartphones, and televisions, the South Korea-based tech behemoth is poised to release a comprehensive financial report on April 30. Samsung’s preliminary estimate suggests its operating profit for the January to March quarter soared to 6.6 trillion won ($4.9 billion; £3.9 billion), marking a staggering 931% increase year-over-year and surpassing analysts’ expectations of approximately 5.7 trillion won.
This earnings leap is primarily driven by a resurgence in semiconductor prices on the international market following a significant downturn the previous year. It’s estimated that global memory chip prices have escalated by about 20% over the last year, underscoring the semiconductor division’s role as Samsung’s most lucrative segment.
The semiconductor industry anticipates continued robust demand throughout the year, buoyed by the proliferation of AI technologies.
Additionally, the recent earthquake in Taiwan on April 3 could tighten the global chip supply, allowing Samsung to elevate its prices further. Taiwan hosts several key chipmakers, including TSMC, which supplies giants like Apple and Nvidia. Despite TSMC reporting minimal impact on its production from the earthquake, some operational disruptions were noted.
Samsung is also expected to benefit from the sales of its latest Galaxy S24 flagship smartphone, introduced in January, further contributing to its optimistic financial outlook for the first quarter of 2024.
For more tech news and insights, visit Rwanda Tech News, and explore similar topics and trends in the world of technology.
