Samsung Electronics has announced record financial results for the second quarter of 2024, cementing its position as a global leader in the technology sector. The rise of artificial intelligence (AI) has propelled the South Korean company’s net profit to exponential growth, surpassing the results from the same period last year by an impressive 471%.
Samsung Electronics posted a net profit of 9.84 trillion won (about $7.139 billion) in the second quarter, up 471 percent from a year earlier, largely thanks to rising chip prices fueled by the artificial intelligence boom, the company said on July 31. The Suwon-based company posted EBITDA of 11.60 trillion won (US$8.8 billion), six times higher than the same quarter a year earlier, while its operating profit reached about 10.44 trillion won (US$8.3 billion).
This extraordinary growth is mainly due to the strong demand for high-end chips, which are essential to power AI applications that are transforming various sectors, from cloud computing to mobile devices. The EFE news agency recently highlighted that Samsung’s investment in AI-focused research and development is paying off, positioning the company at the forefront of technological innovation.
In addition to semiconductors, other segments of Samsung’s business also contributed to the company’s strong performance. For example, the mobile devices division saw an increase in sales of premium smartphones, thanks to the integration of innovative AI-based features, such as smarter virtual assistants and cameras with advanced image processing capabilities.
“Artificial intelligence is revolutionizing the way we live and work, and Samsung is uniquely positioned to capitalize on this opportunity,” said Ricardo Gonzalez, Director of Mobile Experience Sales at Samsung. “Our investment in research and development, combined with our strong supply chain and innovation capabilities, enables us to deliver cutting-edge solutions that meet the needs of our customers around the world.”
Samsung remains optimistic about its long-term growth prospects. The company continues to invest heavily in research and development, with a focus on AI, machine learning, and 5G. In addition, Samsung is exploring new business opportunities, such as electric mobility and digital health, which could further boost its growth in the coming years.
