Samsung’s operating profit soars 930% as AI tailwinds drive demand for memory chips

This is the best summary I could come up with:

Samsung Electronics said on Tuesday that its operating profit surged more than 930% in the first quarter of 2024, driven by soaring demand for its servers, memory chips and storage used in AI applications.

Samsung’s semiconductor business drove the bulk of the improvement, with sales in the division rising to KRW 23.14 trillion ($16.71 billion) in the first quarter, up from KRW 13.73 trillion ($9.92 billion) a year earlier, driven by strong demand for DDR5 chips and storage used for AI servers.

Samsung anticipates demand will remain strong in the second half of this year, buoyed by increasing adoption of generative AI.

“In the second half of 2024, business conditions are expected to remain positive with demand — mainly around generative AI — holding strong, despite continued volatility relating to macroeconomic trends and geopolitical issues,” the company said in a statement.

Demand for mobile is expected to be stable in the quarter, while PC customers are predicted to be affected by slow seasonality, making them likely to adjust their inventories ahead of new product launches in the second half of the year,” the company said.

Two weeks ago, the Biden administration agreed to award Samsung up to $6.4 billion in direct funding under the CHIPS and Science Act to set up semiconductor factories in Texas.

The original article contains 648 words, the summary contains 210 words. Saved 68%. I'm a bot and I'm open source!

10 comments

selling shovels in a gold rush
- Nvidia double dipped with Crypto then AI
- And the moment they scale up production the hype train derails.
  
  So they don't scale up and we'll have another shortage.
RIP Samsung employees when they only profit 920%
No malicious business decisions involved here.
Source: SSD prices predicted to skyrocket throughout 2024 — TrendForce market report projects a 50% price hike
Samsung has decreased its output by 50% since September, though the market has already seen price bumps due to inventory being cleared out.
This is the best summary I could come up with:
Samsung Electronics said on Tuesday that its operating profit surged more than 930% in the first quarter of 2024, driven by soaring demand for its servers, memory chips and storage used in AI applications.
Samsung’s semiconductor business drove the bulk of the improvement, with sales in the division rising to KRW 23.14 trillion ($16.71 billion) in the first quarter, up from KRW 13.73 trillion ($9.92 billion) a year earlier, driven by strong demand for DDR5 chips and storage used for AI servers.
Samsung anticipates demand will remain strong in the second half of this year, buoyed by increasing adoption of generative AI.
“In the second half of 2024, business conditions are expected to remain positive with demand — mainly around generative AI — holding strong, despite continued volatility relating to macroeconomic trends and geopolitical issues,” the company said in a statement.
Demand for mobile is expected to be stable in the quarter, while PC customers are predicted to be affected by slow seasonality, making them likely to adjust their inventories ahead of new product launches in the second half of the year,” the company said.
Two weeks ago, the Biden administration agreed to award Samsung up to $6.4 billion in direct funding under the CHIPS and Science Act to set up semiconductor factories in Texas.
The original article contains 648 words, the summary contains 210 words. Saved 68%. I'm a bot and I'm open source!
Excessive memory cost being place to target development. Got it.