South Korean tech giant Samsung Electronics said yesterday it expects first-quarter operating profit to reach a record high of 57.2 trillion won ($37.9 billion), driven by strong sales of its advanced chips crucial for artificial intelligence.
Operating profit for the January-March period was expected to rise 755 percent year on year to 57.2 trillion won, according to a company regulatory filing.
Its sales reached 133 trillion won, a 68 percent increase compared to the same period last year.
Samsung has emerged as a key player, along with fellow South Korean firm SK hynix, in the supply of high-performing chips in high demand from companies racing to keep up with the fast-evolving AI industry.
"Samsung Electronics achieved its highest-ever results, driven by rising revenue and profits in its memory-focused Device Solutions (DS) division," said a Samsung spokesperson.
High-bandwidth memory, a type of chip used in AI accelerators and data centres that Samsung manufactures, has seen strong orders from major technology firms, helping lift memory prices and support a recovery in the semiconductor cycle.
Samsung did not provide earnings breakdowns from its separate divisions, such as the chip and mobile divisions. It will disclose its final quarterly earnings report at the end of April.
