Samsung Electronics Co. Galaxy S24 smartphones all the way through a media preview match in Seoul, South Korea, on Monday, Jan. 15, 2024. Samsung, the arena’s maximum prolific smartphone maker, is leaning into synthetic understanding as the important thing to unlocking higher gross sales this past. Photographer: SeongJoon Cho/Bloomberg by the use of Getty Pictures
SeongJoon Cho | Bloomberg | Getty Pictures
Samsung Electronics on Tuesday stated working benefit for the primary quarter jumped 932.8% as reminiscence chip costs rebounded at the again of AI optimism.
Listed here are Samsung’s first-quarter effects as opposed to LSEG estimates:
Earnings: 71.92 trillion Korean received (about $52.3 billion), vs. 71.04 trillion Korean wonOperating benefit: 6.61 trillion Korean received, vs. 5.94 trillion Korean received
Samsung’s income for the quarter finishing March jumped 12.81% from a past in the past, future working benefit soared 932.8% in the similar duration.
The figures had been in sequence with the corporate’s steerage previous this era, the place Samsung stated working benefit within the January-March quarter most likely rose to six.6 trillion Korean received, up 931% from a past in the past. The company anticipated first quarter income at 71 trillion received.
The South Korean electronics vast noticed report losses in 2023 because the business reeled from a post-Covid stoop in call for.
“The company posted KRW 71.92 trillion in consolidated revenue on the back of strong sales of flagship Galaxy S24 smartphones and higher prices for memory semiconductors. Operating profit increased to KRW 6.61 trillion as the Memory Business returned to profit by addressing demand for high value-added products,” Samsung Electronics stated in a commentary on Tuesday.
Samsung is the arena’s greatest producer of dynamic random-access reminiscence chips (DRAM), that are recurrently present in a large space of client units together with smartphones and computer systems.
“We assume the earnings surprise was driven by higher memory price hike on AI-driven strong upturn cycle. We anticipate the company will guide for positive memory market outlook and emphasize its readiness in AI era including HBM (12H HBM3E, HBM4) and foundry/packaging solution,” stated SK Kim of Daiwa Capital Markets in emailed feedback to CNBC on Monday, forward of the income leave.
As AI fashions transform extra complicated and datasets transform greater, those fashions want reminiscence chips with upper capacities and sooner speeds to cater to those workloads.
Kim stated in an April 5 document he expects every other worth hike on reminiscence chips to force Samsung’s second-quarter income at the again of an AI growth and the earthquake in Taiwan.
“Especially, we expect more upside in prices resulting from the earthquake in Taiwan,” stated Kim, including that the earthquake in early April briefly impacted TSMC‘s and Micron‘s manufacturing.
Citi analysts stated they see upside for Samsung’s NAND flash reminiscence industry on account of AI computing call for. In a observe on April 5, they reiterated their “buy” score at the company with a goal worth of 120,000 received — a 56% upside from the terminating worth of 76,700 received on Monday.
NAND is every other staple reminiscence chip along DRAM.
“We expect storage (HDD) to be the next bottleneck in AI computing, especially in AI training, and foresee Samsung Electronics to be one of the key beneficiaries of SSD demand momentum for AI training,” stated the Citi analysts.
Rising festival
Many nations on this planet are racing to create complicated semiconductors.
Previous this era, the Biden management assuredly to lend Samsung as much as $6.4 billion of investment to manufacture pristine production capability to create chips in Texas. Micron and TSMC also are eager to obtain grants to spice up chipmaking within the U.S. later many years of chip manufacturing transferring to Asia.
Samsung and TSMC are all set to stand festival from Japan’s Rapidus Company, which was once not too long ago granted $3.89 billion in supplementary subsidies from the Jap govt to pile create 2-nanometer chips from 2027.
There are emerging issues that Samsung Electronics dangers shedding its prominent place to opponents like SK Hynix, the arena’s negative. 2 reminiscence chip maker.
SK Hynix on March 19 stated it become the primary within the business to pile create HBM3E, the next-generation of prime bandwidth reminiscence chips old in AI chipsets. SK Hynix is the main provider of HBM3 chips to Nvidia’s AI chipsets.
Mehdi Hosseini, senior tech {hardware} analyst of Susquehanna World Staff, identified in early April that Samsung old to be the marketplace chief in reminiscence, smartphones and show inventions.
Now, Samsung is best “benefiting from the cycle recovery,” he added.
Within the first quarter, Samsung controlled to regain the govern spot in smartphone shipments later shedding the crown to Apple in 2023, in keeping with World Knowledge Corp.
