Samsung profit boosts as AI chip demand surges
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The news: Samsung reported a four-fold rise in net profit for the March quarter after its semiconductor business returned to profitability.
The numbers: Net profit increased more than 370% to 6.62 trillion won ($7.3 billion) compared to the prior corresponding period.
Samsung's chip business recorded an operating profit of 1.91 trillion won, up 10-fold, having posted successive losses for the last four quarters.
Samsung shares were trading 1.7% higher in Seoul at 1:30pm AEST.
The context: Samsung said that overall demand during the quarter was strong, with prices continuing to rise on solid demand for storage for generative AI.
The company noted that it expected demand to continue to grow in the second quarter, for products used in both AI and conventional server and storage.
It also said that it anticipated strong demand for PC and mobile products due to the expansion of on-device AI, and plans to accelerate the ramping up of its industry-first HBM3E 12H chip to address the demand for generative AI.
The source: Samsung earnings release
