Samsung’s emblem is displayed at its exhibition corridor through the Cellular World Congress in Barcelona, Spain, on February 28, 2024.
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Samsung Electronics on Wednesday reported second-quarter income and working revenue above expectations as demand for superior reminiscence chips crucial to its synthetic intelligence coaching remained robust.
Here is how Samsung’s second-quarter outcomes examine to the common analyst estimate from London Inventory Alternate Group (LSEG).
- earnings: 74.07 trillion gained (roughly US$53.45 billion) vs. 73.74 trillion gained
- working revenue: 10.44 trillion gained vs 9.53 trillion gained
Within the quarter led to June, Samsung’s income elevated by 23.42% year-on-year, and working revenue soared by 1,458.2%.
The South Korean big mentioned clients expanded investments in synthetic intelligence and powerful demand for top bandwidth and conventional reminiscence reminiscent of dynamic random entry reminiscence contributed to the robust outcomes.
Samsung mentioned that within the second half of the 12 months, server AI demand for server merchandise reminiscent of HBM and SSD is anticipated to stay robust. The corporate added that increasing manufacturing capability to fulfill HBM and server DRAM demand could additional constrain the availability of conventional reminiscence chips.
SDD (Stable State Drive) refers back to the semiconductor-based storage system in computer systems.
Samsung shares rose 1.35% on Wednesday morning.
reminiscence energy
HBM storage chips are essential to synthetic intelligence chips, and the increase in synthetic intelligence has created large demand. This has largely benefited firms reminiscent of Samsung Electronics and SK Hynix, the world’s two largest reminiscence chip producers.
“We count on Samsung Electronics’ quarterly revenue to proceed rising as reminiscence common promoting costs are anticipated to proceed its upward development within the coming quarters,” CLSA mentioned in a be aware after releasing Samsung’s second-quarter forecast earlier this month. , till 2025.
“Following the current bulletins of AI semiconductor roadmaps by NVIDIA and world chipmakers, we count on reminiscence costs to development upward by the primary half of 2025. We attribute this to robust demand for HBM and high-density enterprise SSDs ( utilizing extra wafers) and better issues about reminiscence provide.
Enterprise on the world’s largest reminiscence chip maker rebounded final 12 months as reminiscence chip costs recovered on optimism about synthetic intelligence. The South Korean electronics big posted file losses in 2023 because the trade reels from slumping demand for reminiscence chips and electronics following the coronavirus pandemic.
Smartphone demand weakens
The decline in smartphone gross sales within the second quarter was primarily as a result of “base impact of recent mannequin launches” within the first quarter. Nonetheless, Samsung mentioned demand for the Galaxy S24 sequence stays robust.
“Smartphone demand fell sequentially in a seasonally weak quarter, particularly within the high-end section,” the corporate mentioned, including that it anticipated the high-end market to develop within the second half, however the mass market could sluggish.
The profitability of the smartphone enterprise has additionally declined as costs for key elements have risen.
The corporate plans to proceed selling its premium Galaxy AI merchandise. Samsung’s newest transfer comes final week when it introduced the worldwide availability of its newest Galaxy gadgets, together with the Galaxy Z Fold6, Z Flip6, Watch Extremely and Ring.
Counterpoint Analysis mentioned Samsung’s “working efficiency will see better enchancment” within the second half of the 12 months, primarily pushed by the “premium” development of reminiscence chips and smartphones.
“Nonetheless, SK Hynix and Micron will proceed to problem Samsung within the AI discipline, HBM’s development and AI smartphone and PC markets, in addition to shut cooperation and optimization with main computing distributors reminiscent of Qualcomm, Intel and Nvidia,” mentioned Vice President of Analysis at Counterpoint Analysis Neil Shah mentioned in emailed feedback to CNBC.
That is breaking information. Please examine again for updates.
