Samsung's profit surged 15x in Q2 2024, thanks to the AI boom

Samsung's Q2 2024 profit could be around $7.53 billion vs. $485 million in Q2 2023

Samsung Electronics revealed its earnings estimates for Q2 2024 earlier today. It estimates its revenue to be around KRW 74 trillion ($53.64 billion), while the operating profit could be around the KRW 10.4 trillion ($7.53 billion) mark. That staggering profit surge of around 1,542.24% is better than market estimates, largely thanks to a rise in memory chip prices and sales. Q2 2024 was Samsung's most profitable quarter since Q3 2022.

The South Korean firm will reveal the exact figures and break down the revenue and profit figures by division later this month. Most of this profit surge can be attributed to sales of memory chips, like High-Bandwidth Memory (HBM), a vital component of AI accelerators. The prices of DRAM (RAM) chips increased by 13% to 18%, while NAND flash (storage) chip prices rose by 15% to 20% in Q2 2024 compared to the previous quarter.

AI processing is of utmost importance these days, as the use of AI has grown exponentially. It is used in several online services, laptops, smartphones, and even TVs. In our video below, you can see some of the AI features available on Samsung's smartphones.

However, Samsung is lagging behind SK Hynix in HBM memory chips. Its chips still haven't received certification from Nvidia, the world's biggest AI chip brand. This is a sign of worry for Samsung, and the company's outlook for the next few quarters remains to be seen. The South Korean firm replaced its chief of the semiconductor division in a bid to overcome the current chip crisis.

Samsung is also facing a three-day strike by its unionized workers over a pay dispute. Starting Monday, over 28,000 workers plan to stage a walkout, a first in the company's 55-year history.

Samsung's smartphone sales have also fallen over the past few years, and Apple and Chinese firms are eating away at the company's market share. While the Galaxy S24 series, unveiled earlier this year, has been a success, it remains to be seen how well Samsung's upcoming foldable phones and wearable devices do. They will be unveiled on July 10 in Paris, France, just a few days ahead of the Paris 2024 Olympics.