Samsung has released its financial guidance for the second quarter of 2024, showing a significant uptick in profits. The Korean company also reported sales of approximately KRW 74 trillion, a 23% increase compared to the same period last year.
The operating profit is expected to be KRW 10.4 trillion, which is fifteen times higher than April-June 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% |
However, this dramatic increase is slightly misleading. 2023 was a challenging year for Samsung due to declining chip demand. While consumers and manufacturers have shifted away from chips for graphics cards, they are now focusing on the growing trend of AI.
Companies are developing AI-powered devices and servers that require more computing power, and Samsung supplies the necessary semiconductors. A comparison with 2022, before the significant dip, shows that sales and profit are now within the same range.
According to research by TrendForce, quoted by Reuters, memory chip prices surged by 13-18% in just one quarter.
Analysts predict that high-end chips (HBM) and SSDs will lead the market in 2024, though Samsung has been trailing behind fellow Korean manufacturer SK Hynix in supplying HBM to key customers like Nvidia.
