All articles tagged with #chip business
Samsung Electronics more than doubled its third-quarter operating profit to 12.2 trillion won, driven by a strong recovery in its chip division, especially memory chips, amid a broader memory market boom and rising AI demand, surpassing estimates and signaling a positive outlook for the company.
Advanced Micro Devices' (AMD) stock has surged 123% in the last 12 months, driven by future expectations rather than current results. The company's fourth-quarter earnings were mixed, with strong data center segment growth but declines in other segments and disappointing future guidance. AMD's bullish thesis relies on capturing a share of the projected $400 billion AI chip market by 2027. However, with a higher valuation than Nvidia, cautious investors may want to wait for more quarters of data before investing.
Sony reported a 29% drop in operating profit in the fiscal second quarter due to weakness in its imaging sensor business, as well as declines in profit at its financial services and entertainment, technology and services businesses. The company attributed the drop to a 28% decline in profit in its chip division. Despite the decrease in profit, Sony increased its sales forecast for the full year, benefiting from positive foreign exchange rates.
Samsung Electronics is expected to report a nearly 80% plunge in earnings for the third quarter, with operating profit forecasted to decline by 78.7% year-on-year. The company's semiconductor business, which is typically its main profit driver, is expected to post a loss of over 3 trillion won. This is due to falling memory chip prices caused by oversupply and low demand for end products like smartphones and laptops. However, Samsung's display business could see growth due to the release of Apple's iPhone 15 series, and its smartphone unit may benefit from high-end foldable phones. Analysts expect a smaller decline in operating profit for the fourth quarter, with the inventory glut easing and memory prices rising.
Samsung's financial department has ordered a complete revision of its business model due to the general phone market malaise and the chip business logging its first loss in 14 years. To offset the Q2 performance forecast, Samsung is planning to pull the announcement of its 2023 foldables much earlier than usual. The Device Experience division, which houses the smartphone business, managed to score $3 billion in profits, but it wasn't enough to offset the drastic decrease in profits from Samsung's TV or home appliances business in Q1.