With HBM Weighing Down, Could AI Propel Samsung's Stock Performance?
Portfolio Pulse from Benzinga Neuro
Samsung Electronics Co (OTC:SSNLF) is expected to see a significant rise in its first-quarter operating profit, reaching 6.6 trillion won ($4.9 billion), a tenfold increase from the previous year. This growth is attributed to a recovery in the memory semiconductor market. Despite this, Samsung's stock has underperformed due to issues with High Bandwidth Memory (HBM). Analysts predict that AI demand, particularly from companies like Nvidia, will drive the need for specialized storage chips, potentially stabilizing the market and boosting Samsung's semiconductor sales.
April 05, 2024 | 1:32 pm
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Samsung Electronics is anticipated to report a substantial increase in Q1 operating profit due to a recovery in the semiconductor market, yet its stock has lagged because of HBM issues. The growing demand for AI-driven specialized chips, notably from Nvidia, may offer a positive outlook for Samsung's semiconductor business.
Samsung's significant increase in operating profit signals a strong recovery in the semiconductor market, which is crucial for its stock performance. However, the underperformance due to HBM issues is a concern. The potential stabilization of the market through AI-driven demand, especially from key customers like Nvidia, suggests a positive short-term impact on Samsung's stock as it may alleviate concerns over HBM and highlight growth opportunities in the AI sector.
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