Today, the world’s largest chipmaker, Samsung Electronics Co. reported that it earned $4.8 billion in net profit for the March quarter. This amount exceeded analysts’ forecasts by 15%, who believed that the maximum revenue would reach $4 billion. It is also four times higher than the company’s last year’s revenue for the same period.

Analysts emphasise that demand for memory chips, which are essential for modern electronics and AI, has begun to recover after a critical collapse. This is also evidenced by the fact that the company’s shares rose by 1% in Seoul.

In 2023, the company’s overall profit fell to a 15-year low, and its semiconductor division suffered a $10.7 billion loss. Today’s data indicates that the chip market is gradually recovering. This is largely due to the rapid development of artificial intelligence. As the demand for semiconductors has increased after the emergence of ChatGPT OpenAI.

To date, Samsung’s chip division has earned $1.4 billion in net profit. This is the first quarter after four failed ones in which the division has been in the black.

Also in the report, the company said that demand for chips will remain high in the current quarter and may increase in the second half of this year.