Samsung Electronics, the world’s high reminiscence chip maker, is predicted to forecast on Wednesday its revenue progress continued to gradual within the fourth quarter because it struggled to maintain up with Nvidia’s sturdy demand for AI chips.
Samsung, additionally the world’s largest smartphone and TV maker, is predicted to estimate its working revenue rose to eight.2 trillion gained ($5.6 billion roughly Rs. 47,984 crore) within the quarter ended December, up from a low base of WON 2.8 trillion (roughly Rs. 16,547 crore) a yr earlier however down from WON 9.18 trillion (roughly Rs. 54,238 crore) within the previous quarter.
A slew of analysts have minimize their earnings estimates in current weeks, with some anticipating working revenue to fall under WON 8 trillion (roughly Rs. 47,267 crore)
In October, the South Korean firm made a uncommon apology for its disappointing third-quarter efficiency and stated it was making progress in supplying AI chips to Nvidia.
However it has not supplied any replace since, and delays to offering Nvidia with high-end chips have continued to weigh on its earnings, analysts stated.
In November, Samsung changed a few of its high executives within the chip division, whereas naming its chip division chief co-CEO and bestowing him direct management of its struggling reminiscence chip enterprise.
Shares of Samsung, South Korea’s most useful inventory, slumped 32 p.c final yr, lagging the broader market’s 10 p.c loss.
In distinction, Samsung’s cross-town rival, SK Hynix, a significant provider of superior AI reminiscence chips to Nvidia, is predicted to publish report earnings for the fourth quarter, analysts stated.
Costs Underneath Stress
Lacklustre demand for conventional chips utilized in cell phones and PCs and rising output from Chinese language rivals has put strain on chip costs, analysts stated.
US chipmaker Micron Expertise final month forecast quarterly income and revenue under Wall Road estimates, sending shares decrease as weak demand for consumer-centric merchandise impacts the Samsung rival’s enterprise.
Costs of DDR4 DRAM chips utilized in private computer systems fell as a lot as 13 p.c within the fourth quarter and are anticipated to say no one other 15% within the present quarter, in accordance with estimates from researcher TrendForce.
This offset the constructive impression of the weaker native forex that reinforces repatriated earnings from abroad.
The South Korean gained dropped to its weakest stage in 15 years in December after President Yoon Suk Yeol’s martial regulation decree triggered political turmoil and US President-elect Donald Trump advocates larger tariffs on imports.
Samsung’s enterprise of creating logic chips designed by prospects like Qualcomm is predicted to proceed to make losses, eroding its chip earnings, analysts stated.
Samsung will announce estimates on fourth-quarter income and working revenue on Wednesday, with a plan to launch detailed outcomes together with a breakdown of earnings for every of its companies in late January.
© Thomson Reuters 2025
(This story has not been edited by NDTV employees and is auto-generated from a syndicated feed.)
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