Samsung mentioned on Tuesday that it expects the demand for chips and tech gadgets to stay robust all year long, pushed by AI.
The corporate reported an working revenue of 6.61 trillion received for the primary quarter, a tenfold surge from a yr earlier as its chip division returned to profitability after a extreme downturn final yr. Income additionally jumped 12.8% to 71.92 trillion received within the quarter, backed by robust gross sales of Galaxy S24 smartphones and elevated costs of reminiscence chips, Samsung famous.
Enterprise situations are anticipated to stay constructive all through 2024 from robust general demand, primarily round generative AI, the South Korean tech large mentioned.
Additionally: Samsung begins mass manufacturing of Ninth-gen NAND with 50% upped bit density
For the primary quarter, the Gadget Options (DS) Division, Samsung’s chip division, contributed 1.9 trillion received in working revenue, a return to revenue after final yr’s 4.58 trillion received loss. Samsung mentioned it achieved “qualitative development” by specializing in high-value-added merchandise for demand throughout servers, storage, PC, and cell.
For servers and storage, the division’s primary growth-driving sector, demand for generative AI confirmed stable tendencies, the corporate mentioned. The continual enhance within the provide of AI servers and subsequent growth of related cloud providers will enhance demand for high-bandwidth reminiscence (HBM) in addition to typical servers and storage options, Samsung added.
HBM3E 8H went into mass manufacturing this month and HBM3E 12H can be anticipated to begin manufacturing within the second quarter, the corporate added.
Additionally: Why Samsung’s $399 Galaxy A35 is the mid-ranger to beat in 2024
In the meantime, the Cellular Expertise (MX) Enterprise, the corporate’s smartphone enterprise unit, contributed 3.51 trillion received in working revenue for the primary quarter.
In accordance with Samsung, robust gross sales of the Galaxy S24 sequence allowed the unit to take care of double-digit profitability regardless of the quarter historically being a weak demand season. Galaxy AI options on the cellphone resembling Circle to Search confirmed excessive utilization charges and contributed to gross sales development, the corporate mentioned.
For the whole yr of 2024, the MX Enterprise goals to take care of its gross sales momentum by way of the growth of Galaxy AI to extra telephones, foldable gadgets, and tablets.
