Samsung Electronics is looking ahead with optimism towards the demand for artificial intelligence (AI) technologies in the latter half of 2024, buoyed by a notable turnaround in its semiconductor business’s profitability, which had been grappling with losses since 2022.
In the first quarter, the company witnessed a substantial surge in sales of its memory chips, almost doubling to Won17.5 trillion ($12.7 billion) compared to the corresponding period in the previous year. This surge in chip sales was largely attributed to the burgeoning global demand for AI-driven applications and technologies, which drove up chip prices.
The company, as the world’s largest memory chipmaker, has been closely monitoring the evolving landscape of AI technologies. In light of the strong recovery in chip prices and the heightened demand for AI-related products and services, Samsung Electronics remains optimistic about the prospects for the latter half of 2024.
According to statements from the company, business conditions are anticipated to remain favorable in the coming months, with a particular emphasis on the sustained strength of demand in the generative AI sector. Generative AI, which encompasses a range of AI techniques aimed at creating new content, such as images, videos, and text, has been witnessing increased adoption across various industries.
Samsung’s positive outlook for the AI market underscores its commitment to leveraging its technological prowess and market position to capitalize on emerging trends and opportunities. The company’s continued investments in research and development, coupled with its robust manufacturing capabilities, position it well to meet the growing demand for AI-related solutions.
As a reflection of market confidence in Samsung’s prospects, the company’s shares experienced a 1.6 percent increase on Tuesday morning, signaling investor optimism regarding its future performance in the AI-driven landscape.
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