Samsung Reaches A $370 Billion Valuation, As Company Shows Signs Of Recovery In Memory Chips, Boosted Galaxy S24 Sales, More

In 2023, Samsung faced a challenging time as smartphone sales declined and demand for semiconductors and flash memory chips decreased. The company, which had previously held the top spot in overall handset shipments, also lost its position to Apple. However, Samsung is making a significant comeback in 2024, with a recent report revealing that its market capitalization has reached $370 billion. This is the first time since 2021 that Samsung has reached this valuation, indicating that things are going well for the company.

Samsung sees influx of investment as AI chip demand and smartphone sales soar

According to the findings of Korea Joongang Daily, the rise in Samsung’s valuation of $370 billion was largely attributed to foreign investors, who acquired approximately $4.2 billion worth of stock for 11 consecutive days between March 19 and April 2. On the other hand, retail investors sold roughly $5.04 billion in stock during the same timeframe.

Furthermore, Samsung is set to release the Mach-1, its own AI accelerator, in 2025 and compete with NVIDIA, while also providing GDDR7 VRAM chips to the latter for their upcoming RTX 5000 series of gaming GPUs.

Analysts predict that Samsung’s first quarter revenue will be approximately $61.08 billion, representing a 14 percent increase from the previous year. The company’s operating profit is also expected to significantly rise to $4.35 billion, a staggering 711 percent higher than the same period last year. To further reduce expenses, Samsung plans to follow a similar strategy as the previous year and use both the Exynos 2500 and Snapdragon 8 Gen 4 chipsets for their upcoming Galaxy S25 series launch in 2025.

In choosing to exclusively launch the Galaxy S23 range with the Snapdragon 8 Gen 2, Samsung incurred a $9 billion expense solely for the purchase of chipsets in 2023. Therefore, their current strategy is a deliberate effort to decrease unnecessary expenditures and enhance their financial standing in the future.

According to the Korea Joongang Daily, Samsung’s market capitalization has exceeded 500 trillion won before the company’s earnings announcement.