Samsung Q2 strong on server-chip demand, cloud handsets
For the first time since last year, Samsung Electronics Co. Ltd. is expected to have its greatest April-June profit since 2018 with a 15 percent year-on-year increase in revenue from server customers.
According to a Refinitiv SmartEstimate based on 24 analysts’ estimates, operating profit for the world’s largest smartphone and memory chip maker increased to 14.46 trillion won ($11.2 billion) in the third quarter from 12.57 trillion won a year earlier.
An average of seven forecasts suggests that its semiconductor earnings jumped 49% to 10.3 trillion won. About half of Samsung’s income come from the chip industry.
CAPE Investment & Securities analyst Sung-soon Park predicted that US data center companies like Amazon and Microsoft would continue to buy memory chips “to accommodate rising demand for cloud services” in the future.
According to Park, chip stockpiles at these companies are not as high as they were in 2018.
Apple iPhone maker Foxconn on Monday upped its full-year forecast and expressed optimism about the third quarter, citing robust server demand as the reason.