Samsung Electronic devices Co. Galaxy S24 mobile phones throughout a media sneak peek occasion in Seoul, South Korea, on Monday, Jan. 15, 2024. Samsung, the globe’s most respected mobile phone manufacturer, is leaning right into expert system as the secret to opening higher sales this year. Digital Photographer: SeongJoon Cho/Bloomberg using Getty Images
SeongJoon Cho|Bloomberg|Getty Images
Samsung Electronic devices on Tuesday claimed operating earnings for the initial quarter leapt 932.8% as memory chip costs recoiled on the back of AI positive outlook.
Right here are Samsung’s first-quarter outcomes versus LSEG price quotes:
- Earnings:  71.92 trillion Oriental won (concerning $52.3 billion), vs. 71.04 trillion Oriental won
- Operating earnings:  6.61 trillion Oriental won, vs. 5.94 trillion Oriental won
Samsung’s earnings for the quarter finishing March leapt 12.81% from a year back, while running earnings skyrocketed 932.8% in the exact same duration.
The numbers remained in line with the business’s advice previously this month, where Samsung claimed operating earnings in the January-March quarter most likely increased to 6.6 trillion Oriental won, up 931% from a year back. The company anticipated initial quarter earnings at 71 trillion won.
The South Oriental electronic devices gigantic saw document losses in 2023 as the market reeled from a post-Covid downturn sought after.
” The business published KRW 71.92 trillion in combined earnings on the back of solid sales of front runner Galaxy S24 mobile phones and greater costs for memory semiconductors. Operating earnings boosted to KRW 6.61 trillion as the Memory Company went back to make money by dealing with need for high value-added items,” Samsung Electronic devices claimed in a declaration on Tuesday.
Samsung is the globe’s biggest maker of vibrant random-access memory chips (DRAM), which are generally located in a vast array of customer gadgets consisting of mobile phones and computer systems.
” We presume the incomes shock was driven by greater memory cost trek on AI-driven solid upturn cycle. We prepare for the business will certainly direct for favorable memory market overview and highlight its preparedness in AI age consisting of HBM (12H HBM3E, HBM4) and foundry/packaging remedy,” claimed SK Kim of Daiwa Funding Markets in emailed remarks to CNBC on Monday, in advance of the incomes launch.
As AI versions come to be extra complicated and datasets come to be bigger, these versions require memory chips with greater capabilities and faster rates to satisfy these work.
Kim claimed in an April 5 record he anticipates one more cost walk on memory chips to drive Samsung’s second-quarter incomes on the back of an AI boom and the quake in Taiwan.
” Specifically, we anticipate extra upside in costs arising from the quake in Taiwan,” claimed Kim, including that the quake in very early April briefly influenced TSMC‘s and Micron‘s manufacturing.
Citi experts claimed they see upside for Samsung’s NAND flash memory service as an outcome of AI calculating need. In a note on April 5, they restated their “get” ranking on the company with a target cost of 120,000 won â $” a 56% upside from the closing cost of 76,700 won on Monday.
NAND is one more staple memory chip along with DRAM.
” We anticipate storage space (HDD) to be the following traffic jam in AI computer, particularly in AI training, and predict Samsung Electronic devices to be among the essential recipients of SSD need energy for AI training,” claimed the Citi experts.
Expanding competition
Many nations on the planet are competing to make sophisticated semiconductors.
Samsung and TSMC are set to face competition from Japan’s Rapidus Corporation, which was recently granted $3.89 billion in additional subsidies from the Japanese government to mass produce 2-nanometer chips from 2027.
There are rising concerns that Samsung Electronics risks losing its leading position to rivals like SK Hynix, the world’s no. 2 memory chip maker.
SK Hynix on March 19 said it became the first in the market to standardize HBM3E, the next-generation of high data transfer memory chips made use of in AI chipsets. SK Hynix is the main provider of HBM3 chips to Nvidia’s AI chipsets.
Mehdi Hosseini, elderly technology equipment expert of Susquehanna International Team, mentioned in very early April that Samsung made use of to be the marketplace leader in memory, mobile phones and present developments.
Currently, Samsung is just “taking advantage of the cycle recuperation,” he included.
In the initial quarter, Samsung took care of to gain back the leading place in mobile phone deliveries after shedding the crown to Apple in 2023, according to International Data Corp.
