{"id":33796,"date":"2017-07-05T05:36:58","date_gmt":"2017-07-05T05:36:58","guid":{"rendered":"http:\/\/www.biphoo.com\/bipnews\/?p=33796"},"modified":"2017-07-05T05:36:58","modified_gmt":"2017-07-05T05:36:58","slug":"samsung-on-track-to-take-intels-chip-crown-with-record-second-quarter-earnings","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/technology\/samsung-on-track-to-take-intels-chip-crown-with-record-second-quarter-earnings.html","title":{"rendered":"Samsung on track to take Intel’s chip crown with record second-quarter earnings"},"content":{"rendered":"

Samsung on track to take Intel’s chip crown with record second-quarter earnings<\/span><\/strong><\/span><\/h2>\n

Samsung Electronics Co Ltd (005930.KS) is expected to report its best-ever quarterly profit in the second quarter, with soaring memory chip sales pushing it past Intel Corp (INTC.O) as the biggest semiconductor maker by revenue for the first time.<\/span><\/p>\n

The world’s largest memory chip maker is the among the biggest beneficiaries of soaring demand for processing firepower on smartphones and servers, which has fueled an industry super-cycle amid limited supply growth.<\/span><\/p>\n

Underscoring its dominant position, Samsung said on Tuesday it plans to invest some $18.6 billion in South Korea as it seeks to extend its lead in memory chips and next-generation displays for smartphones.<\/span><\/p>\n

The South Korean tech giant, Asia’s third-largest company by market capitalization, is now poised to knock Intel off the top of the global semiconductor market-share rankings for the first time since 1991.<\/span><\/p>\n

“From the second quarter, Samsung will become No. 1 in market share due to the recent increase in data centers and demand for solid-state drives,” NH Investment & Securities analyst Peter Lee wrote in a note to clients.<\/span><\/p>\n

Samsung’s April-June operating profit is expected to leap 67 percent from a year earlier to 13.1 trillion won ($11.4 billion), a new high, according to the average forecast from a Thomson Reuters survey of 18 analysts.<\/span><\/p>\n

The same survey expects July-September profit to be even higher at 13.8 trillion won.<\/span><\/p>\n

Solid sales of the Galaxy S8 smartphone launched in April likely provided an additional boost, keeping the firm ahead of rival Apple Inc (AAPL.O) as the world’s top smartphone maker.<\/span><\/p>\n

The S8’s performance has reassured investors whose nerves were shaken last year by the costly withdrawal of Samsung’s premium Galaxy Note 7 due to fire-prone batteries.<\/span><\/p>\n

Samsung shares are trading at a near-record high of 2.35 million won each as of Tuesday. They have gained 30 percent so far this year on top of a 43 percent surge in 2016.<\/span><\/p>\n

IN THE PIPELINE<\/span><\/p>\n

“The Galaxy S8 series has been out for more than 2 months now and we see similar traction as the Galaxy S7 series,” Counterpoint analyst Tom Kang said.<\/span><\/p>\n

Samsung would sell about 49 million S8s by the end of its first full-year release, in line with first-year sales of the Galaxy S7, he said.<\/span><\/p>\n

Samsung is also preparing to unveil the Galaxy Note 8 in August, a source told Reuters, restoring the company’s schedule of market-moving gadget releases after the interruption of the Note 7 debacle.<\/span><\/p>\n

The company will issue earnings guidance early on Friday but will not disclose details on its performance until late July.<\/span><\/p>\n

Nomura has predicted DRAM chip prices will continue to rise in the second half of 2017 due to limited supply and strong demand driven by servers.<\/span><\/p>\n

Demand for solid-state drives (SSD) and smartphones would maintain profits for producers of NAND semiconductors, despite an easing of a production bottleneck, it said.<\/span><\/p>\n

Source:-\u00a0http:\/\/www.reuters.com\/article\/us-samsung-elec-results-preview-idUSKBN19P2LT<\/span><\/p>\n

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