Samsung increases profits tenfold in the first quarter of the year | Technology

Samsung Electronics announced a tenfold increase in operating profit in the first quarter of the year, as the expansion of artificial intelligence (AI) led to a recovery in computer chip markets.

The South Korean giant said that operating profit for the period between January and March was 6.6 billion won (4.5 billion euros), higher than the 640 billion won (434 million euros) it achieved in the same period last year.

Revenue increased by almost 13% to 71.9 billion won (48 billion euros), driven by higher prices for memory chips and sales of Galaxy S24 smartphones, he said.

Samsung made 1.91 billion won (1.28 billion) in operating profits from its semiconductor business, marking the division’s first quarterly profit since the fourth quarter of 2022, as the chip market continues to recover from a slump cyclical deepened by the covid-19 pandemic and global trade tensions.

Regarding the future, the company pointed out that the memory chip market is expected to remain strong in the coming months, driven by the expansion of generative AI technologies, which is increasing demand for conventional chips used in servers and chips. advanced technologies designed to process AI.

“In the second half of 2024, business conditions are expected to remain positive with demand – particularly around generative AI – remaining strong despite continued volatility related to macroeconomic trends and geopolitical issues,” according to an announcement.

For smartphones, Samsung will continue to drive sales of its flagship device, the Galaxy S24, built with a host of new AI-enabled features, including live translation during phone calls in 13 languages ​​and 17 dialects.