Boosted by AI, Samsung Q1 Operating Profit Soars 755% to Record High

Samsung's explosive financial performance is mainly attributed to the rise of AI data centers. This boom has not only restricted the supply of traditional chips required for smartphones and personal computers but also caused chip prices to nearly double within a single quarter. Research firm TrendForce points out that due to the ongoing shortage, DRAM memory contract prices are expected to rise by more than 50% this quarter.

In terms of revenue, Samsung estimates Q1 sales to reach 133 trillion won, a 68% increase from the same period last year. This demonstrates that Samsung has joined its South Korean rival SK Hynix in becoming a core supplier in the AI industry race. A Samsung spokesperson stated that this best-ever performance is primarily driven by the Device Solutions (DS) division, which oversees the memory business.

Beyond hardware sales, the 'AI inference' process required by AI models (such as ChatGPT) to generate real-time responses has also sparked a rebound in demand for traditional chips.

The preliminary earnings guidance released by Samsung this time did not provide a detailed breakdown of profits by division (such as chips and mobile). The company expects to officially publish its complete quarterly financial report in late April, at which point the market will have a clearer understanding of the specific performance of its various businesses. (Translated by: Zheng Shiyun) 1150407