Samsung Profit For Q1 Jumps Higher

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Samsung Profit For Q1 Jumps Higher

Samsung Profit For Q1 Jumps 10x On Ai Chip Demand

According to the latest results announced by Samsung Electronics, their Q1 profits have jumped by 10x which is almost 1000%.

Such a massive jump in profits was driven by the high demand for AI chips. The AI industry is growing at a really fast pace and at the center of it all is AI chips.

Samsung Q1 Operating Profit Reached $4.8 Billion.

As it happens, Samsung is among the top memory chip manufacturers which makes the ideal candidate to capitalize on the AI bandwagon.

The data shows that Samsungs operating profit for Q1 reached $4.8 billion which is equivalent to 6.6 trillion won. During the Q1 2023, the companys operating profit was only 640 billion won which highlights the jump seen this year.

As for the Q1 revenue, the number reported by Samsung is 71.9 trillion won, a lot higher than the revenue of 63.75 trillion won in Q1 2023.

The sales of AI chips are only a portion as the company also enjoyed strong sales of smartphones like the Galaxy flagship series.

According to experts, a sudden jump was seen in AI development, which allowed Samsung to post incredible results.

Recently, the company has also announced plans to start the development of HBM chips. In fact, the pass production of these next-gen chips will start from April.

Before that, the only company making such chips was SK Hynix, Samsung's key rival. Now that Samsung has also moved into this space, it is only acceptable for Samsungs profits and revenue to reach new heights.

According to some, the Samsung results are only impressive because they are compared with weak results from 2023.

Last year, there was no such massive AI boom due to the weak global demand. As a result, the Samsungs profit numbers only look good because they are compared with a weak base.

For Q2 2024, Samsung believes that the demand and revenue will remain sold as the AI market is showing no signs of slowing down.

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