South Korean electronics giant Samsung posted significant growth in the first quarter of 2024 thanks to a resurgence in demand for memory chips.
The market leader in memory chips and smartphones said it expected its operating profit to have increased more than tenfold year-on-year in its earnings guidance for the first quarter of 2024, released on Friday.
The consolidated operating profit from the core businesses is expected to amount to about 6.6 trillion won ($4.9 billion), Samsung said. In the first quarter of last year, the figure was 640 billion won.
Samsung expects consolidated sales to increase by 11.4% to 71 trillion won.
The company traditionally publishes more precise figures at a later date.
Oversupply and sluggish demand has long plagued the chip industry. However, Samsung had noted signs of recovery in the fourth quarter of 2023. The company expects the recovery to continue this year.
The industry is benefiting above all from rising prices as a result of the boom in artificial intelligence (AI).