Samsung’s operating profit soars 930% as AI tailwinds drive demand for memory chips (techcrunch.com)
from MichaelTen@lemmy.world to technology@lemmy.world on 06 May 2024 05:54
https://lemmy.world/post/15075444

#technology

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autotldr@lemmings.world on 06 May 2024 05:55 next collapse

This is the best summary I could come up with:


Samsung Electronics said on Tuesday that its operating profit surged more than 930% in the first quarter of 2024, driven by soaring demand for its servers, memory chips and storage used in AI applications.

Samsung’s semiconductor business drove the bulk of the improvement, with sales in the division rising to KRW 23.14 trillion ($16.71 billion) in the first quarter, up from KRW 13.73 trillion ($9.92 billion) a year earlier, driven by strong demand for DDR5 chips and storage used for AI servers.

Samsung anticipates demand will remain strong in the second half of this year, buoyed by increasing adoption of generative AI.

“In the second half of 2024, business conditions are expected to remain positive with demand — mainly around generative AI — holding strong, despite continued volatility relating to macroeconomic trends and geopolitical issues,” the company said in a statement.

Demand for mobile is expected to be stable in the quarter, while PC customers are predicted to be affected by slow seasonality, making them likely to adjust their inventories ahead of new product launches in the second half of the year,” the company said.

Two weeks ago, the Biden administration agreed to award Samsung up to $6.4 billion in direct funding under the CHIPS and Science Act to set up semiconductor factories in Texas.


The original article contains 648 words, the summary contains 210 words. Saved 68%. I’m a bot and I’m open source!

quoll@lemmy.sdf.org on 06 May 2024 07:22 next collapse

selling shovels in a gold rush

SlopppyEngineer@lemmy.world on 06 May 2024 11:26 next collapse

And the moment they scale up production the hype train derails.

maynarkh@feddit.nl on 06 May 2024 13:16 collapse

So they don’t scale up and we’ll have another shortage.

SlopppyEngineer@lemmy.world on 06 May 2024 17:58 collapse

Yes, life would be easier if they plan out these disruptive innovations in advance.

But nobody can really tell when the bubble bursts. Although it would be ironic if AI can indeed predict its own bubble bursting.

maynarkh@feddit.nl on 06 May 2024 18:18 collapse

Or if money wasn’t used as the ultimate priority mechanism for distributing scarce goods in a time of unprecedented inequality.

kameecoding@lemmy.world on 06 May 2024 12:14 collapse

Nvidia double dipped with Crypto then AI

Moreless@lemmy.world on 06 May 2024 12:49 next collapse

RIP Samsung employees when they only profit 920%

Aopen@discuss.tchncs.de on 06 May 2024 15:22 next collapse

No malicious business decisions involved here.

Source: SSD prices predicted to skyrocket throughout 2024 — TrendForce market report projects a 50% price hike

Samsung has decreased its output by 50% since September, though the market has already seen price bumps due to inventory being cleared out.

PenisWenisGenius@lemmynsfw.com on 06 May 2024 19:02 collapse

Intentionally induced shortages should be illegal.

Where does Samsung get their chips made anyway? Sure would hate for some homebrewers to find a way to make ssds out of mouser or digikey parts when prices hike back up to $1 per GB. Would be a shame for corporate profits indeed.

fruitycoder@sh.itjust.works on 06 May 2024 17:29 collapse

Excessive memory cost being place to target development. Got it.