Close Menu
    Facebook LinkedIn YouTube Instagram X (Twitter)
    Blue Tech Wave Media
    Facebook LinkedIn YouTube Instagram X (Twitter)
    • Home
    • Leadership Alliance
    • Exclusives
    • Internet Governance
      • Regulation
      • Governance Bodies
      • Emerging Tech
    • IT Infrastructure
      • Networking
      • Cloud
      • Data Centres
    • Company Stories
      • Profiles
      • Startups
      • Tech Titans
      • Partner Content
    • Others
      • Fintech
        • Blockchain
        • Payments
        • Regulation
      • Tech Trends
        • AI
        • AR/VR
        • IoT
      • Video / Podcast
    Blue Tech Wave Media
    Home » AI frenzy boosts Samsung Q2 profit 13-fold
    Samsung-AI frenzy-July-05
    Samsung-AI frenzy-July-05
    AI

    AI frenzy boosts Samsung Q2 profit 13-fold

    By Vicky WuJuly 5, 2024Updated:July 8, 2024No Comments3 Mins Read
    Share
    Facebook Twitter LinkedIn Pinterest Email
    • 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.

    OUR TAKE
    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.

    Also read: Samsung Galaxy Z Flip 6 and Z Fold 6 product pages are leaked

    Also read: Samsung unveils SmartThings Pro for businesses

    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.

    AI frenzy DRAM Samsung
    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 v.wu@btw.media.

    Related Posts

    Orange Business: Unveils defence division

    July 11, 2025

    AFRINET SA: Expands digital services in the DRC

    July 10, 2025

    Vodafone and Digital Realty launch subsea hub in Crete

    July 10, 2025
    Add A Comment
    Leave A Reply Cancel Reply

    CATEGORIES
    Archives
    • July 2025
    • June 2025
    • May 2025
    • April 2025
    • March 2025
    • February 2025
    • January 2025
    • December 2024
    • November 2024
    • October 2024
    • September 2024
    • August 2024
    • July 2024
    • June 2024
    • May 2024
    • April 2024
    • March 2024
    • February 2024
    • January 2024
    • December 2023
    • November 2023
    • October 2023
    • September 2023
    • August 2023
    • July 2023

    Blue Tech Wave (BTW.Media) is a future-facing tech media brand delivering sharp insights, trendspotting, and bold storytelling across digital, social, and video. We translate complexity into clarity—so you’re always ahead of the curve.

    BTW
    • About BTW
    • Contact Us
    • Join Our Team
    TERMS
    • Privacy Policy
    • Cookie Policy
    • Terms of Use
    Facebook X (Twitter) Instagram YouTube LinkedIn

    Type above and press Enter to search. Press Esc to cancel.