Samsung’s operating profit in the first quarter of 2023 was below expectations, falling 96% compared to the previous quarter. But the company is expected to see massive growth with a 931% profit increase in the first quarter of 2024. Waiting. This turnaround is attributed to strong sales of the Galaxy S24 series and higher memory prices. Analysts estimate Samsung’s sales will be between 70 trillion and 72 trillion Korean won, with potential profits as high as 6.6 trillion Korean won ($4.89 billion).
We recently learned that Samsung’s value reached 370 billion dollars. This is a big deal because it shows that investors believe in the company’s future, and they bought approximately $4.2 billion worth of shares. However, Samsung has had a hard time in 2023. Even though they are the largest DRAM chip manufacturer, they have faced difficulties. Component prices dropped due to excess stocks following the COVID-19 outbreak. Additionally, demand for products that use DRAM memory chips, such as smartphones, tablets and laptops, has also decreased. This caused Samsung’s earnings to decrease. But now Samsung is focusing on the AI era.
They recently introduced their new HBM3E memory, which is important for GPUs. NVIDIA is using this memory to stay ahead in the field of AI computing. Samsung also plans to launch its own AI accelerator called Mach-1 in 2025 to compete with NVIDIA. The company is looking to reduce expenses to maintain momentum. They will do this by using two different chipsets, Exynos 2500 and Snapdragon 8 Gen 4, in the Galaxy S25 series smartphones that will be released next year. This will be their strategy to continue growing while managing costs.
