SEOUL, April 30 (Reuters) – Samsung Electronics said on Thursday its operating profit jumped eightfold to a record \u200cin the first quarter, underpinned by higher chip \u200cprices as an artificial intelligence boom led to a supply crunch.<\/p>\n
Samsung expects \u200bearnings to improve further in the second quarter, saying investment in AI infrastructure would continue to expand, driving up memory chip prices.<\/p>\n
The world’s top memory chipmaker posted 57.2 trillion won ($38.43 \u200cbillion) in operating profit \u2060for the January-to-March period, in line with its estimate of 57.2 trillion won and up \u2060from 6.69 trillion won a year earlier.<\/p>\n
The South Korean company’s revenue rose 69% to 133.9 trillion won in the quarter \u200bfrom a \u200byear earlier.<\/p>\n
The AI data \u200bcentre boom has spurred chipmakers \u200cto shift capacity to making advanced chips used in Nvidia’s AI accelerators, squeezing supply of traditional chips and driving up prices.<\/p>\n
Operating profit at Samsung’s chip business, its main cash cow, surged to a record 53.7 trillion won in \u200cthe first quarter, accounting for 94% \u200bof its total profit.<\/p>\n
Its mobile and \u200bnetwork division profit \u200bdeclined by 30% to 3 trillion won, squeezed \u200cby surging chip prices.<\/p>\n
Samsung Electronics \u200bshares rose 1.3% \u200bafter the earnings announcement.<\/p>\n
Shares of Samsung Electronics, Asia’s second-most valuable company after Taiwan’s TSMC, have surged 88% \u200bthis year, outstripping \u200cthe wider market’s 59% gain.<\/p>\n
($1 = 1,488.2900 won)<\/p>\n
(Reporting by Hyunjoo \u200bJin, Heekyong Yang and Joyce Lee; Editing by \u200bMuralikumar Anantharaman and Christopher Cushing)<\/p>\n","protected":false},"excerpt":{"rendered":"SEOUL, April 30 (Reuters) – Samsung Electronics said on Thursday its operating profit jumped eightfold to a record…\n","protected":false},"author":2,"featured_media":404204,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[365,363,364,111,139,69,78163,10162,145],"class_list":["post-404203","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-new-zealand","tag-newzealand","tag-nz","tag-operating-profit","tag-samsung-electronics","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/404203","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=404203"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/404203\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/404204"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=404203"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=404203"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=404203"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}