New Delhi: Samsung Electronics reported a 932.8 percent increase in operating profit for the first quarter, driven by a rebound in memory chip prices due to artificial intelligence (AI) optimism. The company's revenue for the quarter ending March jumped 12.81 percent from a year ago, while operating profit soared 932.8%. 

This figure aligns with the company's guidance earlier this month, which predicted operating profit in the January-March quarter likely rose to 6.6 trillion Korean won, up 931 percent from a year ago. Samsung Electronics saw record losses in 2023 as the industry recovered from a post-Covid slump in demand.

Citi analysts see an upside for Samsung's NAND flash memory business due to AI computing demand, with a target price of 120,000 won. Samsung expects the second quarter to be driven mostly by demand for generative AI, while mobile demand remains stable. 

Meanwhile, the company warns of escalating geopolitical instability and continued cost hikes in major components, particularly memory.

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