The Samsung brand is on show at their pavilion through the Cell World Congress in Barcelona, Spain, on February 28, 2024. (Picture by Joan Cros/NurPhoto through Getty Photos)
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Samsung Electronics on Wednesday reported higher-than-expected second-quarter income and working revenue, as demand for its superior reminiscence chips which can be essential for synthetic intelligence coaching remained robust.
Listed here are Samsung’s second-quarter outcomes versus analysts’ common estimates in response to LSEG.
- Income: 74.07 trillion Korean received (about $53.45 billion) vs. 73.74 trillion Korean received
- Working revenue: 10.44 trillion Korean received vs 9.53 trillion Korean received
Samsung’s income for the quarter ended June jumped 23.42% from a 12 months earlier, whereas working revenue soared 1,458.2%.
Excessive-bandwidth reminiscence chips are essential for AI chips – which have seen an enormous demand enabled by the AI growth. This has largely benefitted corporations such Samsung Electronics and SK Hynix, the highest two reminiscence chipmakers on this planet.
“With reminiscence’s common promoting costs anticipated to proceed their uptrend for subsequent a number of quarters we foresee a quarterly sequential revenue development for Samsung Electronics till 2025,” CLSA stated in a report earlier this month following Samsung’s second-quarter forecasts.
“After Nvidia and world chip makers introduced an AI semiconductor roadmap lately, we foresee a reminiscence worth hike pattern till 1H25. We attribute this to higher considerations about reminiscence provide amid sturdy demand for HBM and excessive density enterprise SSD, which use extra wafers, with elevated manufacturing lead time,” SK Kim of Daiwa Capital Markets stated in a report final month.
SDD, or solid-state drive, discuss with a semiconductor-based storage gadget present in computer systems.
Enterprise for the world’s largest reminiscence chip maker rebounded as reminiscence chip costs recovered on AI optimism final 12 months. The South Korean electronics big noticed file losses in 2023 because the trade reeled from a post-Covid hunch in demand for reminiscence chips and electronics.
Samsung reportedly has cleared the checks for the usage of its HBM3 chips in Nvidia processors for the Chinese language market. SK Hynix has thus far led the HBM reminiscence chip market, having been the only provider of HBM3 chips to Nvidia.
SK Hynix on Thursday logged its highest quarterly revenue for the reason that second quarter of 2018, rebounding from a lack of 2.88 trillion received in the identical interval a 12 months in the past.
Counterpoint Analysis stated Samsung ought to see “higher uptick to its operational efficiency” within the second half, primarily pushed by reminiscence chips and a “premiumisation” pattern of smartphones.
In its newest push for AI-powered merchandise, Samsung introduced world availability for its latest Galaxy units together with Galaxy Z Fold6, Z Flip6, Watch Extremely and Ring.
“SK Hynix and Micron although will proceed to problem Samsung in reminiscence each within the AI section with HBM development and within the AI smartphone and PC market as effectively with shut tie-ups and optimizations with key compute gamers resembling Qualcomm, Intel and Nvidia,” Neil Shah, analysis vice chairman at Counterpoint Analysis, stated in emailed feedback to CNBC.
That is breaking information. Please verify again for updates.
