Samsung’s logo is displayed at its exhibition hall during the Mobile World Congress in Barcelona, Spain, on February 28, 2024.
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Samsung Electronics on Wednesday reported second-quarter revenue and operating profit above expectations as demand for advanced memory chips critical to its artificial intelligence training remained strong.
Here’s how Samsung’s second-quarter results compare to the average analyst estimate from London Stock Exchange Group (LSEG).
- Revenue: 74.07 trillion won (approximately US$53.45 billion) vs 73.74 trillion won
- Operating profit: KRW 10.44 trillion vs. KRW 9.53 trillion
In the quarter ended in June, Samsung’s revenue increased by 23.42% year-on-year, and operating profit soared by 1,458.2%.
High-bandwidth memory chips are critical for artificial intelligence chips—the boom in artificial intelligence has created huge demand. This has largely benefited companies such as Samsung Electronics and SK Hynix, the world’s two largest memory chip manufacturers.
“We expect Samsung Electronics’ quarterly profit to continue growing as memory average selling prices are expected to continue its upward trend in the coming quarters,” CLSA said in a note after releasing Samsung’s second-quarter forecast earlier this month. , until 2025.
“Following the recent announcements of AI semiconductor roadmaps by NVIDIA and global chipmakers, we expect memory prices to trend upward through the first half of 2025. We attribute this to strong demand for HBM and high-density enterprise SSDs ( using more wafers) and greater concerns about memory supply.
SDD, or solid-state drive, refers to the semiconductor-based storage device in computers.
Business at the world’s largest memory chip maker rebounded last year as memory chip prices recovered on optimism about artificial intelligence. The South Korean electronics giant posted record losses in 2023 as the industry reels from slumping demand for memory chips and electronics following the coronavirus pandemic.
Samsung reportedly passed the test In recognition of the use of its HBM3 chips in Nvidia processors for the Chinese market. SK Hynix has so far led the HBM memory chip market and is the sole supplier of Nvidia’s HBM3 chips.
SK Hynix on Thursday recorded its highest quarterly profit since the second quarter of 2018, rebounding from a 2.88 trillion won loss in the same period last year.
Counterpoint Research said Samsung’s “operating performance will see greater improvement” in the second half of the year, mainly driven by the “premium” trend of memory chips and smartphones.
In its latest artificial intelligence product launch, Samsung announced Latest Galaxy devices launch globally Including Galaxy Z Fold6, Z Flip6, Watch Ultra and Ring.
“However, SK Hynix and Micron will continue to challenge Samsung in the AI field, HBM’s growth and AI smartphone and PC markets, as well as close cooperation and optimization with major computing vendors such as Qualcomm, Intel and Nvidia,” said Vice President of Research at Counterpoint Research Neil Shah said in emailed comments to CNBC.
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