Samsung has officially taken advantage of the artificial intelligence wave after it reportedly recorded a surge in net income worth 6.62 trillion won or $4.8 billion.
Sources indicate that demand for memory chips, which power modern devices and artificial intelligence, is resurging following a prolonged period of decrease. The company's shares gained by less than 1% during early trading in Seoul.
More than four times the corporation's earnings from the previous year, the largest memory chip producer in the world posted net profits for the March quarter of 6.62 trillion won ($4.8 billion).
Samsung reported that strong sales of its flagship Galaxy S24 smartphones and rising memory chip costs propelled an almost 13% revenue gain to 71.9 trillion won ($52 billion).
The COVID-19 epidemic and difficulties in international commerce have caused the chip market to periodically fall.
Despite this, the company's semiconductor business achieved 1.91 trillion won ($1.38 billion) in operating earnings. This represents the division's first profit for the quarter since the fourth quarter of 2022.
Samsung's AI Predictions and Rise
Samsung predicts that the advancement of generative AI technologies will drive further growth in the memory chip market in the coming months.
This will increase demand for more conventional computing processors, including high-bandwidth memory, or HBM, as well as more advanced CPUs designed for processing artificial intelligence.
In response to increased demand for AI chips, Samsung said that mass manufacturing of its most recent HBM chips, the 8-layer HBM3E, began this month. The 12-layer version of the chips will be produced in the second quarter.
Samsung's profit estimate also coincides with data from market research, which indicates that in February, Samsung sold more than 19 million cell phones, outpacing Apple, which sold more than 17 million phones for an 18% market share.
Analysts cited revenue growth in the US and European markets as the reason for Samsung's ascent to the top of the rankings.
It has been reported that Samsung intends to integrate generative AI into its voice assistant, Bixby. This is just one illustration of how the tech giant incorporates AI into almost every aspect of its devices.
Samsung's AI Projects
Currently, Bixby is limited to using Samsung's Galaxy AI features hands-free; it does not provide complete AI support; instead, it is merely a way to access Samsung's other AI tools.
Furthermore, Samsung recently disclosed that the "Mach-1" AI chip will be available in the first quarter of 2025. This AI processor could be Samsung's attempt to compete with NVIDIA's recently unveiled "B200" chip, which is expected to be released later this year.
By year's end, the new chip will go into manufacturing, and it will be released in early 2025, targeting edge applications with low power usage needs.
