Samsung stated on Tuesday that it expects the demand for chips and tech units to stay sturdy all year long, pushed by AI.
The corporate reported an working revenue of 6.61 trillion gained 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 gained within the quarter, backed by sturdy gross sales of Galaxy S24 smartphones and elevated costs of reminiscence chips, Samsung famous.
Enterprise situations are anticipated to stay optimistic all through 2024 from sturdy general demand, primarily round generative AI, the South Korean tech large stated.
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For the primary quarter, the Gadget Options (DS) Division, Samsung’s chip division, contributed 1.9 trillion gained in working revenue, a return to revenue after final yr’s 4.58 trillion gained loss. Samsung stated it achieved “qualitative progress” by specializing in high-value-added merchandise for demand throughout servers, storage, PC, and cellular.
For servers and storage, the division’s essential growth-driving sector, demand for generative AI confirmed stable traits, the corporate stated. The continual improve within the provide of AI servers and subsequent enlargement of related cloud companies will improve demand for high-bandwidth reminiscence (HBM) in addition to standard 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.
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In the meantime, the Cellular Expertise (MX) Enterprise, the corporate’s smartphone enterprise unit, contributed 3.51 trillion gained in working revenue for the primary quarter.
In response to Samsung, sturdy gross sales of the Galaxy S24 collection allowed the unit to keep up double-digit profitability regardless of the quarter historically being a weak demand season. Galaxy AI options on the telephone reminiscent of Circle to Search confirmed excessive utilization charges and contributed to gross sales progress, the corporate stated.
For the complete yr of 2024, the MX Enterprise goals to keep up its gross sales momentum by means of the enlargement of Galaxy AI to extra telephones, foldable units, and tablets.