Samsung Electronics announced last night that the second quarter of 2024 is facing the company's fastest growth in many years.
Samsung, the world’s largest maker of memory chips, smartphones and TVs, said its operating profit will surge 15-fold in the second quarter, beating expectations. Revenue rose about 23 percent on-year to 74 trillion won. Profit rose to 10.4 trillion won, compared with an expected 8.34 trillion won.
Citigroup's Peter Lee notes that Samsung's “high-bandwidth” chips could be approved “soon” by Nvidia, which could lead to a deal.
Sanjeev Rana, of CLSA Securities Korea, expects the rise in memory chip prices to continue to drive profits in the second half of the year and beyond.
Song Myung-sup of HI Investment & Securities believes the guidance for operating results was very good. The analyst also believes Samsung’s “high-bandwidth” chips will pass Nvidia’s tests, and says Nvidia needs more suppliers in addition to SK Hynix to meet demand.
41 out of 44 Bloomberg analysts have a buy recommendation on Samsung shares, while the remaining three have a hold recommendation.
The stock rose 3% on the Seoul Stock Exchange.
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