Samsung Posts Record Q4 Profit as AI Fuels Chip Demand
Samsung Electronics has reported a record quarterly operating profit for Q4 2024, driven by surging demand for memory chips from the artificial intelligence sector.
Key Financial Highlights
- Operating Profit: 15.2 trillion won ($11 billion), a 242% year-on-year increase.
- Revenue: 71.9 trillion won, up 12%.
- Net Profit: 11.5 trillion won, a jump of 244%.
Chip Division Leads the Surge
The company’s semiconductor business, which includes memory chips, was the primary driver. It reported an operating profit of 10.4 trillion won, a dramatic turnaround from a 4.6 trillion won loss in the same period last year.
Samsung attributed this performance to robust demand for high-end memory chips used in AI, specifically high-bandwidth memory (HBM) and solid-state drives (SSDs).
Outlook and Strategy
The tech giant expects the AI boom to continue propelling memory chip demand through 2025. To maintain its competitive edge, the company plans increased investment in research and development.
“We will continue to strengthen our leadership in the memory market by focusing on high-value products and expanding our capacity for HBM and other advanced chips,” Samsung said in a statement.
Following the announcement, Samsung’s shares rose 2.5% in early trading on Tuesday.
