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Investing.com– Samsung Electronics Co Ltd (KS:) clocked a tenfold surge in its first quarter revenue, aided mainly by a restoration in chip demand due to the quickly rising synthetic intelligence trade.
The world’s largest reminiscence chips and smartphone maker stated working revenue rose to six.6 trillion received ($4.8 billion) within the three months to March 31, up from the 640 billion received seen final 12 months. The studying was consistent with estimates launched by Samsung firstly of April.
First-quarter income rose to 71.9 trillion received from 63.75 trillion received a 12 months in the past, Samsung stated in a press launch. Stronger gross sales of its flagship Galaxy S24 smartphone line additionally factored into the elevated income, as did a weaker South Korean received.
The bumper outcomes come as growing AI growth sparked a rebound in chip demand in latest quarters. Samsung’s high-bandwith reminiscence chips are a key element of the processors utilized in working AI fashions.
The corporate lately outlined plans to start creating the subsequent era of HBM chips, citing expectations of elevated demand from AI. Samsung started mass manufacturing of superior HBM3E chips in April. Its rival SK Hynix Inc (KS:) was till April the one maker of HBM3E chips- presently essentially the most superior reminiscence chips, that are used primarily in AI growth.
Nonetheless, Samsung’s seemingly exponential progress in revenue was additionally partly pushed by a weak base for comparability from 2023, the place the chipmaker was nonetheless grappling with weak world demand.
The chipmaker stated its second quarter will even “stay stable” on demand from AI.
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