South Korea’s tech giant, Samsung Electronics, has recently made headlines with a surprising boost in profits for the second quarter of 2024. The company announced an operating profit of 10.4 trillion won, a significant increase compared to the same period last year. This impressive result was largely attributed to the strong demand and rising prices of artificial intelligence (AI) memory chips.
In a statement released on July 5th, 2024, Samsung revealed that its sales reached 74 trillion won, showing a notable increase of 23.3%. The operating profit saw a staggering growth rate of 1452.2%, surpassing analysts’ expectations by a wide margin. Analysts had initially estimated an operating profit of around 8.3 trillion won, making Samsung’s actual performance even more remarkable.
The company’s Device Solutions (DS) division, responsible for semiconductors, played a crucial role in this success, contributing approximately 60% to the total operating profit. The future outlook for Samsung remains positive, with expectations of further growth in DRAM and NAND chip prices in the second half of the year.
Overall, Samsung’s unexpected profit boost has signaled a promising trajectory for the company in the rapidly evolving tech industry. With the demand for AI chips on the rise, Samsung’s strategic position in the market seems to have positioned them for continued success in the foreseeable future.
