Samsung has unveiled its financial guidance for the second quarter of 2024, highlighting a substantial increase in profits. The Korean tech giant reported sales of approximately KRW 74 trillion, marking a 23% rise compared to the same period last year.
Impressive Financial Performance
The operating profit for Q2 2024 is projected to be KRW 10.4 trillion, a staggering fifteenfold increase from the April-June period in 2023.
| (all units in KRW / USD) | Q2 2024 Earnings Guidance | Q1 2024 | QoQ Change | Q2 2023 | YoY Change |
|---|---|---|---|---|---|
| Sales | 74 trillion / 53.5 billion | 71.92 trillion / 52.06 billion | 2.9% | 60 trillion / 46 billion | 23% |
| Operating Profit | 10.4 trillion / 7.53 billion | 6.61 trillion / 4.78 billion | 57% | 0.6 trillion / 455 million | 1633% |
While the dramatic increase in profits is noteworthy, it’s essential to consider the context. The year 2023 was challenging for Samsung due to a decline in chip demand. However, there has been a shift towards AI-powered devices and servers, which require more computing power. Samsung supplies the necessary semiconductors, aligning with this growing trend.
A comparison with 2022, before the significant dip in demand, shows that sales and profits are now within a similar range.
Growing Demand for AI and High-End Chips
According to research by TrendForce, as quoted by Reuters, memory chip prices surged by 13-18% in just one quarter. Analysts predict that high-end chips (HBM) and SSDs will dominate the market in 2024. However, Samsung has been trailing behind fellow Korean manufacturer SK Hynix in supplying HBM to key customers like Nvidia.
Samsung’s Q2 2024 financial guidance demonstrates a strong recovery and adaptation to market demands, particularly in the AI sector. As the rollout of Galaxy AI continues, over 100 million people are expected to benefit from this advancement.
Pokdepinion: Given that the Korean giant has been the subject of revenue losses in recent time, this one is a much welcomed change for them. Hopefully, this will be a sign of better things to come moving forward, especially in the new fiscal year.
