Danish Kapoor
Danish Kapoor

Samsung’s profits rise as interest in AI chips soars

Samsung has released its financial guidance for the second quarter of 2024. The figures shared reveal a significant increase in the company’s profits. Increasing its profits by 23 percent compared to the same period of the previous year, the South Korean electronics giant closed the period with a profit of approximately 74 trillion won (1.75 trillion TL).

There was a 15-fold increase in operating profit compared to the same period of the previous year. The company closed the period with an operating profit of 10.4 trillion won (246.48 billion TL).

However, it should be noted that this dramatic increase is somewhat misleading. 2023 has been a tough year for the South Korean company due to falling chip demand. Consumers and manufacturers are now focused on the growing trend of artificial intelligence as they move away from chips for graphics cards.

Companies are developing AI-powered devices and servers that require more computing power, and Samsung is providing the necessary semiconductors. Compared to 2022, before the big drop, sales and profits are now in the same range.


According to the latest report from research firm TrendForce, memory chip prices have increased by 13 to 18 percent in just one quarter.

Samsung lags behind SK Hynix in chip supply

Analysts predict that high-end chips and SSDs will lead the market in 2024. However, Samsung lags behind Korean manufacturer SK Hynix in supplying high-end chips to major customers such as Nvidia. Closing this gap will be one of the company’s key goals in the coming period.

Danish Kapoor