Samsung AI strategy delivers record revenue despite semiconductor headwinds

The strategic focus of Samsung Electronics has achieved high revenues in the first quarter of 2025, as the South Korean technology giant moved in the challenges of the semiconductor market and growing uncertainty in global trade.

The company recorded a quarterly quarterly revenue of 79.14 trillion (55.4 billion dollars), which represents an increase of 10 % on an annual basis, according to its financial results issued on Wednesday. Operating profits increased to 6.7 trillion kilograms ($ 4.68 billion), which represents a modest increase of 1.5 % compared to the same period last year.

The results exceeded Samsung’s previous forecast for KRW 79 trillion and analysts’ expectations.

Smart phone success counters chip challenges

The mobile phone experience (MX) has emerged as the best performance, as it contributed 37 trillion Croo 37 trillion in unified revenue and 4.3 trillion of operating profit – its highest level in four years. Success was primarily driven by strong sales for the leading Galaxy S25 series, which has artificial intelligence capabilities via Galaxy Ai.

The company’s profit report said: “The efficiency of the enhanced cost and the low prices for some ingredients in the two -digit profitability of the two numbers contributed.”

On the other hand, the Samsung (DS), which includes semiconductor operations, has published 25.1 trillion kilograms in operating profit – a 42 % decrease from the previous year. Performance reflects the ongoing challenges in the semiconductor market, especially in the sales of the HBM.

“The total profits were affected by the average erosion of the sale price (ASP), as well as a decrease in HBM sales due to export controls on artificial intelligence chips and postponed demand in anticipation of the upcoming improved HBM3E products,” said Samsung.

Future cloud tensions

Despite the standard revenue, Samsung expressed its warning from the second quarter, as it dropped its usual commercial view due to the growth of the total economic uncertainty resulting from global trade tensions and the slow economic growth.

“Due to rapid changes in geopolitical policies and tensions between major countries, it is difficult to predict the impact of business on definitions and counter measures,” said Samsung’s executive director during a Wednesday’s profit call.

It is especially concerned about the “mutual” definitions of US president Donald Trump, most of which were suspended to July but threatening to influence dozens of countries including Vietnam and South Korea, where Samsung produces smartphones and offers.

While Samsung noted that its leading products such as semiconductor, smartphones and tablets are currently exempt from these definitions, the company revealed that Washington is conducting a tariff in these groups.

“There are a lot of uncertainty in front of us […] “We are communicating with the relevant countries to reduce the negative effects,” Samsung said during the call.

In response to its challenges, the company revealed that it is considering transporting the production of TV and home appliances.

investment-and-future-strategy">Investing artificial intelligence and future strategy

Despite these opposite winds, Samsung is still committed to the strategy of artificial intelligence, as the highest annual research and development expenditures ever specialized in 2024. In the first quarter of 2025, the company increased the spending and development by 16 % compared to the same period last year, as KRW reached 9 trillion.

For the rest of the year 2025, Samsung plans to expand the Amnesty International Smartphone collection by introducing “great intelligence” into the Galaxy A series and the launch of the Galaxy S25 Edge into Q2. Later in the year, the company will enhance a folding assortment with improved AI user experiences.

In the semiconductor area, Samsung aims to enhance its high -value market through its serviced portfolio and population for improved HBM3E 12H products to meet the initial demand. The company expects the request -related demand to remain high in the second half of 2025, coinciding with the launch of new graphics processing units.

“In mobile markets and computers, Amnesty International is expected to multiply on the device, and therefore memory works will respond proactively to this shift in the business environment through the leading LPDDR5X products in the industry”, “

The company’s museum works are still focusing on developing the 2nm portal for all (GAA), which is still on the specified date despite the current challenges.

Market and competitive landscape reaction

Samsung shares were trading approximately 0.6 % after the announcement, reflecting investor concerns about uninterrupted expectations.

The results shed light on the complex Samsung mode in the artificial intelligence market-successful in the applications facing the consumer while working to catch up with competitors in the AI’s semiconductor components.

His local rival SK Hynix, who reported a 158 % jump in operational profit last week to 7.4 trillion KRW, Samsung in the total DRAM market revenue for the first time, obtained a 36 % global market share compared to Samsung by 34 %, according to CounterPoint research.

SK Hynix has been particularly clear in the high -frequency memory sector, which is very important for artificial intelligence servant applications.

“Samsung has assumed that the uncertainty is diminishing, as it expects its performance to improve in the second half of the year,” the company noted, and it strikes an optimistic tone with caution despite the upcoming challenges.

Standard Samsung revenue hides a pivotal crossroads for the technology giant: While its enhanced smartphones of artificial intelligence thrive, its works that dominate the semiconductors back behind the Amnesty International Revolution.

The next quarters will reveal whether the huge research and development investments of Samsung can restore the lost land in HBM chips, or if we are witnessing a fundamental shift in the power in the manufacture of Asian technology that can change the global supply chain of the prosecution for years to come.

For the company that has been rebuilt itself several times during its 56 -year -old, the semiconductor race may prove male intelligence that it is more transformed according to.

(Credit Image: Human)

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