Samsung Electronics expects 10x jump in profits
The post-pandemic slump appears to be over – if Samsung Electronics' Q1 profits projection is anything to go by.
The Korean giant expects its profits for the first three months of 2024 to jump more than 10-fold compared to a year earlier. Its estimate comes ahead of its full financial reporting on April 30.
Samsung Electronics is on target for operating profit of 6.6 trillion won (USD 4.9 billion), which is 931% higher than Q1 2023. It is mostly thanks to a rebound in semiconductor prices triggered by demand for artificial intelligence (AI) applications. This follows a tricky period of post-pandemic slump and excess supply.
Despite the buoyant profit numbers, Samsung's revenue is expected to miss expectations. However, analysts believe the good news for Samsung will persist across 2024, especially when the firm begins shipments of its HBM memory chips in the third quarter.
