In their quest for growth and profits, technology giants are focusing entirely on AI. Investment is not limited to products: the infrastructure that powers AI also plays an important role.
In their most recent quarterly results, Samsung, Microsoft and Meta emphasize a strong focus on (AI), cloud infrastructure and premium products to drive future growth. The three companies released their quarterly results at the same time, betting on similar trends.
Innovation and market share
The results note that technology industry sees AI not only as a crucial driver of innovation, but also as a strategic pillar for gaining market share and creating new revenue models.
Microsoft, Meta and Samsung all three claim to have made significant progress in rolling out AI technologies, both in their products and in their own infrastructure. The demand for AI solutions and services is growing rapidly, driven by the adoption of cloud-based AI solutions, AI integration into devices and services, and the increasing need for data centers. These technologies help companies not only improve their own performance, but also support customers in digital transformations and automation.
Samsung: AI and memory
Samsung achieved strong performance in its Device Solutions (DS) division this quarter, mainly due to growing demand for memory products such as DRAM and NAND, which are critical for AI and servers.
Samsung’s revenue grew seventeen percent year-on-year as a result, while its memory division saw 78 percent growth, largely driven by AI and server needs. Demand for premium smartphones, including foldable models and AI-enabled devices, also contributed to the results. Samsung expects to continue increasing its market share in high-value product segments such as memory and mobile devices with advanced AI functionality.
Microsoft: AI and cloud
Microsoft saw a strong increase in cloud revenue, particularly due to the contribution of AI services within Azure, which accounts for significant revenue. Microsoft expects the AI business to soon generate more than $10 billion in annual revenue.
Microsoft is also betting on Microsoft 365 and Teams, with strong growth in subscription services. This is being driven by demand for AI-enabled tools for the business market, according to the company itself.
Meta: AI and ads
Meta posted nineteen percent growth in ad revenue this quarter, thanks in part to the implementation of AI-based optimizations for ad and content recommendations. Meta AI and Llama have been rapidly adopted, with more than 500 million monthly active users, and have contributed to higher user engagement on Facebook and Instagram, according to the company.
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Sights set on AI and premium segment
A general trend among these companies is their focus on high-end and premium product lines. Samsung, for example, is focusing on the premium smartphone market and high-performance memory products, while Microsoft is investing in gaming and enterprise AI solutions.
With Reality Labs, Meta is exploring new technologies, such as smart glasses and mixed reality headsets, and sees opportunities in wearables as a platform for AI. These strategies reflect the shift to high-margin premium segments, where consumers are willing to pay more for innovative technologies.
AI, AI and more AI
Quarterly results from Samsung, Microsoft and Meta show a shared direction toward AI, AI-enabled cloud infrastructure and premium markets. Investment in AI technologies contributes to higher revenue and market share, while the expansion of premium product lines helps increase profitability. These companies are determined to put AI at the center of their future strategies and are committing their capital to further growth in these segments.