Samsung Electronics Hits 57 Trillion Operating Profit In Q1... Run for the world's No. 1 company

*This content was translated by AI.

Samsung Electronics is forecasting a leap forward as the world's No. 1 company. Samsung Electronics set a new milestone in the Korean company's history with its record-high quarterly performance in the first quarter of this year. Based on the semiconductor boom, expectations are growing for the leap forward of the world's No. 1 company as it opens the era of 'quarter operating profit of 50 trillion won'.

Samsung Electronics announced in a public announcement on the 7th that it recorded a preliminary performance of 133 trillion won in sales and 57.2 trillion won in operating profit in the first quarter of this year. Both sales and operating profit are all-time high on a quarterly basis.

Compared to the same period last year, sales and operating profit increased 68.06% and 755.01% respectively. In particular, operating profit exceeded the total annual operating profit of 43.6 trillion won last year in just one quarter. It is also the first time that the quarterly operating profit has exceeded 50 trillion won.

Market expectations were also significantly higher. It is considered an "earnings surprise," significantly exceeding the consensus of 121.39 trillion won in sales and 41.83 trillion won in operating profit, respectively.

It is analyzed that this good performance was led by the DS (Device Solution) division, which is in charge of semiconductor business. The securities industry estimates that the DS division alone made an operating profit of around 50 trillion won.

In particular, D-RAM alone seems to have generated more than 40 trillion won in operating profit. The recent surge in demand for memory due to the expansion of artificial intelligence (AI) data centers drove performance. Profitability has improved significantly as sales of high value-added products such as high-bandwidth memory (HBM) have expanded and DRAM and NAND prices have soared. Market research companies believe that DRAM prices will rise up to 90% in the first quarter compared to the previous quarter, followed by further increases in the second quarter.

On the other hand, it is analyzed that the DX (Device Experience) sector, which is in charge of the finished product business, has been relatively sluggish due to the burden of soaring semiconductor prices. Mobile, TV, and home appliance businesses are also expected to improve their profitability only slightly due to the burden of rising semiconductor prices and slowing demand.

Industry sources say Samsung Electronics is highly likely to lead to structural growth beyond its short-term performance. This is because the amount of memory installed is continuously increasing as the market expands from AI learning to inference. In addition, the expansion of global AI infrastructure investment is expected to drive memory demand in the long term.

Moreover, Samsung Electronics is the world's only semiconductor company that has the world's largest memory production capacity and can provide "one-stop solutions" from logic to memory, foundry and front-end packaging, which is analyzed to be the biggest beneficiary in this super cycle.

If this trend continues, there is also a possibility that Samsung Electronics will become the No. 1 global operating profit company. Nvidia is currently leading the market, but the gap between the two companies is rapidly narrowing.

In fact, KB Securities predicted Samsung Electronics' operating profit of 488 trillion won next year, surpassing Nvidia's expected performance of 485 trillion won.

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*This content was translated by AI.