Samsung suffered through heavy losses in 2023. Credit: JUNG YEON-JE/AFP via Getty Images.

Samsung said it expects its profits for the first three months of 2024 to increase more than tenfold compared with the same period in 2023.

The company estimated that its operating profit rose to $4.9bn in the January–March quarter, 931% higher than the same period a year prior. 

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Samsung’s expected profit increase comes as demand for AI-related products continues to grow. 

GlobalData predicts that the AI arms race in 2023, which saw companies rush to create their own large language models, will transition to the ‘AI chip race’ in 2024.

This will be seen in not only Big Tech companies but also amongst start-ups that will look to create their own proprietary chips, according to the report.

The value of semiconductor deals in the US and China have declined as a result of tightening US restrictions, Covid-19 and an uncertain economic market.

In 2020, the value of semiconductor deals in the US totalled $132bn, significantly more than China, which saw a total value of $36bn (260.4bn yuan), according to GlobalData.

In 2022, the value of semiconductor deals in the US dropped to $108bn, while the value of deals in China suffered less of a drop to $30bn.

The US and China saw another drop in semiconductor deal value in 2023. The total value of deals in the US totalled $56bn, while the value of deals in China totalled $16bn, closing the gap further between the two countries.

GlobalData forecasts that the overall AI market will be worth $909bn by 2030, registering a compound annual growth rate (CAGR) of 35% between 2022 and 2030.

In the GenAI space, revenues are expected to grow from $1.8bn in 2022 to $33bn in 2027 at a CAGR of 80%.