Samsung's profit soars by impressive 932.8%: What led to this?

Samsung Electronics reported a significant increase in operating profit for the first quarter of 2024. The company's revenue grew 12.81% to about $52.3 billion and operating profit was $4.79 billion, up 932.8% year-over-year.

So, after suffering significant losses in 2023 due to the decline in demand following the COVID-19 pandemic, Samsung has regained its strong position in the market. The company even slightly exceeded its own forecasts: company experts expected profit growth of 931%.

What led to such an increase in profits? A huge role here was played by the recovery in prices for memory chips amid optimism in the field of artificial intelligence.

Analysts at Citi noted growth potential for Samsung's NAND flash memory business due to growing demand for artificial intelligence computing.

Samsung now predicts that the second quarter will see increased demand for generative artificial intelligence, while interest in mobile devices will remain stable.