Samsung guidance reveals second-quarter profit surge due to growth in AI chip market

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Samsung has released its financial outlook for the second quarter of 2024, showing a significant increase in profits. The South Korean company also reported that sales came in at around 74 trillion won, up 23% from the same period last year.

Operating profit is expected to be 10.4 trillion won, which is the 15th times This will be higher than April to June 2023.




(All units
South Korean Won to US Dollar
Q2 2024
Earnings Forecast
Q1 2024 Quarter-over-quarter change Q2 2023 Year-on-year change
sale 74 trillion /
53.5 billion
71.92 trillion yen /
52.06 billion
2.9%% 60 trillion /
46 billion
twenty three%
Operating income 10.4 trillion yen /
7.53 billion
6.61 trillion yen /
4.78 billion
57% 0.6 trillion /
455 million
1633%

However, this dramatic increase is a bit misleading: 2023 was a tough year for Samsung due to declining chip demand, with consumers and manufacturers moving away from chips for graphics cards and now focusing on the growing trend of AI.

The companies are developing AI-enabled devices and servers that require more advanced computing power, and Samsung is supplying the necessary semiconductors.Compared to 2022, before the big drop, sales and profits are now in the same range.

Memory chip prices have surged 13-18 percent in just one quarter, according to Trendforce research cited by Reuters.

Analysts predict that high-end chips (HBM) and SSDs will lead the market in 2024, but Samsung is lagging behind fellow South Korean manufacturer SK Hynix in supplying HBM to major customers such as Nvidia.

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