Samsung Electronics Sees 1462% Surge in Profit For Q2, Driven By AI Demand

Samsung Electronics today reported impressive results for Q2 2024. The company's sales totaled 74.07 trillion won (about 390 billion RMB), up 23.44% year-on-year. Operating profit skyrocketed to 10.44 trillion won (about 55 billion RMB), marking a staggering 1462.29% increase. Net profit also saw a significant boost to 9.8413 trillion won (about 52 billion RMB), up 470.97% year-on-year, reaching the highest level in 14 years.

Factors suggesting that artificial intelligence is being used widely are the primary cause of this explosive expansion. Chip costs have increased as a result of AI's growth in demand for storage chips. Notably, Samsung's semiconductor division excelled, with sales reaching 28.56 trillion won (about 150 billion RMB) and operating profit hitting 6.45 trillion won (about 34 billion RMB), the best performance since Q3 2022. With the significant increase in sales of high-value products such as DDR5 and high bandwidth memory (HBM), Samsung is gradually proving its dominant position in the electronics industry market.

Additionally, the Device Experience (DX) division performed well, with sales of 42.07 trillion won (about 221 billion RMB) and operating profit of 2.72 trillion won (about 14 billion RMB). Despite a slowdown in the smartphone market during Q2, the Galaxy S24 series achieved double-digit growth in both shipment volume and revenue, demonstrating robust performance in the high-end segment.

With regard to the second half of the year, Samsung is upbeat about the market's prospects. The company anticipates further growth in the market for memory goods, particularly SSD, DDR5, and HBM products. On the other hand, the market share of artificial intelligence servers is anticipated to rise in tandem with the ongoing advancements in artificial intelligence technology. Additionally, this gives Samsung's semiconductor branch more opportunities. It is also expected that the smartphone market would rebound, with high-end devices benefiting from higher demand brought on by AI applications.

Overall, Samsung Electronics has achieved remarkable financial growth in Q2 2024, with a 1462% surge in operating profit driven by the booming demand for storage chips due to artificial intelligence advancements. The company's semiconductor and Device Experience businesses have performed admirably, breaking previous sales and profit records. The significance of premium memory products and artificial intelligence (AI) technologies to the electronics sector is highlighted by this pattern.

We at XRS provide a wide selection of storage chip devices. In addition to having a large amount of spot inventory, our business accepts orders from outside.For more information or consultation, please visit our website or contact us directly. We are available to assist you in fulfilling all of your storage chip needs.