AI frenzy boosts Samsung Q2 profit 13-fold

  • Samsung Electronics has reported a 13-fold increase in its second-quarter profit, fueled by robust demand for AI technology and the rebound in memory chip prices.
  • The company’s semiconductor division in Q2 2024 is projected to achieve an operating profit of $3.3 billion, a notable recovery from a loss of $3.2 billion in the same period last year.

Despite overall profit growth, Samsung’s mobile business has experienced a decline. The division’s operating profit for the second quarter is expected to be $1.6 billion, down from $2.2 billion in the same period last year. This decrease is attributed to increased costs in components and marketing, as well as investments in AI service development.
–Vicky Wu, BTW Reporter

What happened

Samsung Electronics, the world’s largest manufacturer of memory chips, smartphones, and TVs, anticipates a staggering 13-fold surge in second-quarter profit compared to last year. Estimated operating earnings for Q2 2024 are set to soar to 8.8 trillion won ($6.34 billion). This marks Samsung’s highest profit since Q3 2022, highlighting a significant turnaround in performance.

The remarkable profit surge is primarily driven by the resurgence of Samsung’s semiconductor division. In Q2 2024, this segment is projected to achieve an operating profit of $3.3 billion, a notable recovery from a loss of $3.2 billion in the same period last year. The increased demand for advanced DRAM chips, especially in AI applications, has been instrumental in this growth. Prices for DRAM chips have jumped between 13% to 18%, while NAND Flash chips for data storage have seen increases of 15% to 20%, as per data provider TrendForce.

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Why it’s important

The thriving AI industry has markedly boosted Samsung’s profitability, spurred by a heightened demand for advanced memory solutions, notably high-bandwidth memory (HBM), critical for AI data centres. This trend has catalysed an increase in both prices and demand for Samsung’s premium DRAM chips, indispensable components for AI chipsets and data centre infrastructure. Improved performance from Samsung’s semiconductor unit could herald the second consecutive quarter of profit gains.

After experiencing a downturn in chip prices from mid-2022 to late 2023 due to reduced demand amid the COVID-19 pandemic, Samsung’s semiconductor business is witnessing a robust recovery. The South Korean tech giant now anticipates a second consecutive quarter of improved profits, driven by the strong performance of its semiconductor division and the sustained rise in memory chip prices. This turnaround underscores the resilience of Samsung’s semiconductor arm and its strategic importance in the expanding AI landscape.


Vicky Wu

Vicky is an intern reporter at Blue Tech Wave specialising in AI and Blockchain. She graduated from Dalian University of Foreign Languages. Send tips to

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