Tech giant Samsung gained incredible profits in the first quarter of this year. During this period the profit of the company increased by 933 percent. It is said that Samsung has achieved this success as the price of memory chips has increased due to advances in the field of artificial intelligence.
According to Samsung Electronics, the company’s total revenue in the first quarter of this year has increased by about 13 percent compared to a year ago. From January to March, Samsung’s revenue came in at $52.3 billion. Which is about 72 trillion Won in South Korea’s local currency.
CNBC reports that revenue and profit were higher than Samsung’s forecast but still in line. In the three months to March 2024, the company’s net profit increased by 932.8 percent. Excluding all costs, Samsung earned 661 trillion Won in three months.
According to Samsung, behind this large number of revenue and profit are the sales of Galaxy S24 smartphones and the increase in the price of memory semiconductors. Advances in the field of artificial intelligence have increased the demand and price of memory chips. Samsung’s demand for NAND has grown in artificial intelligence as flash memory between NAND and DRAM memory chips. The company is hopeful that this will continue in the second quarter starting from April.
On the other hand, Samsung is the world’s largest producer of dynamic random-access memory chips or DRAMs. This chip is used in various regular products ranging from smartphones-computers to consumer products.
Last year, Samsung lost more than four and a half trillion Korean won in the first quarter and two trillion Korean won in the last quarter. A strong earthquake in Taiwan, the world’s top producer of semiconductors, and massive advances in artificial intelligence have turned Samsung’s financial statements 360 degrees this year.
At the beginning of this month, the Biden administration announced the provision of 6.4 billion dollars to Samsung to increase the production capacity of memory chips in Texas, USA.