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Samsung Profits Jump Over 900%

Samsung Electronics anticipates a significant surge in its profits for the first quarter of 2024, exceeding 10 times the figures from the previous year.

This surge aligns with the recovery of chip prices following a post-pandemic downturn and the escalating demand for artificial intelligence (AI)-related products.

As the world’s foremost manufacturer of memory chips, smartphones, and televisions, headquartered in South Korea, Samsung’s financial outlook is robust.

Scheduled for release on April 30th, the detailed financial report will shed light on the company’s performance.

Preliminary estimates by the technology behemoth indicate an operating profit of 6.6 trillion won ($4.9bn; £3.9bn) for the January-March quarter, marking a staggering 931% increase compared to the same period in 2023, surpassing analysts’ projections of around 5.7 trillion won.

This optimistic forecast is underpinned by the resurgence in semiconductor prices globally, a sector where Samsung maintains a dominant presence.

Over the past year, global memory chip prices have surged by approximately 20%, further buoying Samsung’s semiconductor division, which traditionally serves as the primary revenue generator for the corporation.

The ongoing robust demand for semiconductors, particularly propelled by the flourishing AI sector, is anticipated to sustain this momentum throughout the year.

Moreover, the recent earthquake in Taiwan on April 3rd threatens to tighten the global chip supply, potentially enabling Samsung to implement further price hikes.

Taiwan, housing several major chip manufacturers such as TSMC, a key supplier to tech giants like Apple and Nvidia, experienced disruptions to its operations despite TSMC’s assertion that the earthquake had minimal impact on production.

Additionally, Samsung stands to benefit from the sales of its latest flagship Galaxy S24 smartphones, launched in January, contributing to its anticipated positive performance.

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