Samsung Electronics is expected to release data on Tuesday, October 8, according to which its profit more than quadrupled last quarter amid increased demand for chips.
It is worth noting that the mentioned company’s business recovery is on a slowdown trajectory. To a large extent, the relevant situation is because the firm is in no hurry to benefit from the so-called artificial intelligence boom.
The company’s operating profit is expected for the quarter which ended on September 30, will be fixed at 10.33 trillion won ($7.67 billion). The corresponding point of view is the average forecast among analysts interviewed by LSEG.
It is worth noting that the expected operating profit is a significant surge from 2.43 trillion won in the same period last year. At the same time, in the quarter preceding the three-month period ended September 30, the corresponding figure was fixed at 10.44 trillion won.
The prevailing view among analysts is that the global semiconductor market is on a recovery trajectory after last year’s downturn. The driving force behind the corresponding tendency is the high level of demand for chips used in artificial intelligence servers. At the same time, the recovery in consumer interest in microcircuits, which are essential for smartphones and personal computers, is showing a slowdown.
Samsung is currently aiming to catch up with its competitors SK Hynix and Micron in a kind of race to supply high-end artificial intelligence chips to Nvidia, the world’s largest developer of graphics processing units needed for training and subsequent operation of AI systems.
Samsung’s bread-and-butter chip arm is expected to post an operating profit of 5.5 trillion won for the quarter that ended September 30. It is worth noting that this indicator is 15% lower than the result of the preceding quarter. The mentioned operating profit indicator is predicted by analysts interviewed by the media. They noted that this figure was in the zone of impact of Samsung’s decision to set aside provisions for bonuses.
Analysts interviewed by the media also note that the company’s belated response to the market for high-margin artificial intelligence chips, exposure to China and focus on traditional mobile microcircuits have made it more vulnerable to geopolitical risks and weak demand.
As we have reported earlier, Samsung to Acquire Startup Oxford Semantic.
Serhii Mikhailov
Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.
