In the second quarter of 2024, the profit of the Samsung Electronics company increased six times, making 6.96 billion dollars, when analysts expected a profit of 5.8 billion dollars, reports Bloomberg.

Earlier, the company announced a 15-fold increase in operating profit in the second quarter to $7.6 billion, as well as a 23% increase in revenue to $53.5 billion.

As predicted, Samsung's growth engine has become its semiconductor business, according to the source. Operating profit in this area reached $4.7 billion, as the increase in prices of memory devices was mainly accompanied by an increase in demand for HBM type chips.

Revenues from the sale of the latter increased by more than 50% compared to the first quarter. Currently, HBM3E chips account for no more than 10% of Samsung's core revenue. The company intends to supply this type of chips at once in the interests of several customers, but categorically refuses to mention their names.

Samsung representatives did not comment on the news about obtaining permission to supply HBM3 chips for Nvidia's needs, citing strict contractual relations with customers, but emphasized that by the end of the year they are going to increase the share of revenue from HBM3E supplies to 60%. Next year, the company is going to double the production volume of HBM family chips, and in the second half it will increase 3.5 times compared to the first half.

Samsung's research and development spending rose 11% in the latest quarter to a record $5.8 billion. The strike that started a few weeks ago did not affect the rhythm of Samsung's product release, as the management emphasizes.

The South Korean giant has admitted that this year the supply of memory chips for PC type computers and smartphones will be limited, as the priority will be given to the server segment, in particular to HBM.

Revenues in the smartphone segment, as Samsung expects, will grow, but mainly due to demand for expensive models with artificial intelligence functions, while demand in the entry-level price segment will slow. The Galaxy S24 series continues to enjoy steady demand, as Samsung representatives note. According to them, the dynamics of negative revenue in the smartphone segment in the second quarter is caused by seasonal factors.