Samsung Reports Uptick in Profit Amid Surge in AI Tech

Samsung Electronics on Tuesday reported a 10-fold increase in operating profit for the last quarter as the expansion of artificial intelligence technologies drives a rebound in the markets for computer memory chips.

The South Korean semiconductor and smartphone giant said its operating profit for the January to March quarter came in at US $5 billion, up from the US $465 million it earned during the same period last year.

Revenue rose by nearly 13 per cent, driven by higher prices for memory chips and robust sales of its flagship Galaxy S24 smartphones.

The company earned US $1.38 billion in operating profit from its semiconductor business, marking the division’s first quarterly profit since the fourth quarter of 2022.

Samsung projected the memory chip market to remain strong in the coming months, driven by the expansion of generative AI technologies.