Samsung is supposed to earn more profit during the period of July and September than it did in the last three years. Samsung produces memory chips that are used in computers and phones, and the prices of these chips have increased a lot in recent times. Those companies operating large computer servers had to purchase more chips, so they began ordering more from Samsung. Because of this, Samsung earned around 10.1 trillion won, which is approximately 7.11 billion dollars.
The profit figures are derived from what 31 analysts predict will take place when Samsung reports its actual results on Tuesday. They expect Samsung to earn 10% more profit than at the same point last year. The primary reason is that ordinary memory chips are being sold at better prices today. These are the chips that have existed for years and find their way into average computers and smartphones. Prices increased because more firms required them for their servers.
Special Chips Not Selling as Much Yet
Samsung produces a unique chip called HBM for intelligent computer applications. These chips are stacked upon one another like pancakes to conserve space and consume less power. Large organisations purchase these chips to develop computers capable of learning and reasoning. But Samsung failed to sell its latest version of these unique chips to Nvidia, which affected its sales marginally.
Two other firms, SK Hynix and Micron, have been selling more of these special chips than Samsung. They’ve been doing well financially from firms that require chips for smart computer programs. Samsung has also struggled to sell advanced chips to China because the United States has placed rules in place preventing it. This made it more difficult for Samsung to expand as quickly as the other firms.
Big Deals Coming That Could Help Samsung
The price of Samsung stock rose by 43% after the company announced that it would supply chips to Tesla in July. Tesla produces electric vehicles and requires large quantities of chips for the computers inside those vehicles. Samsung also signed an agreement with OpenAI, the company producing ChatGPT. OpenAI and Samsung will collaborate on a large project known as Stargate that requires large numbers of memory chips.
Experts believe these agreements will enable Samsung to earn even more in the future. Samsung also agreed on a $16.5 billion deal with Tesla to produce unique chips for them. If Samsung succeeds with this undertaking, other large tech companies may also want to purchase chips from Samsung. But specialists caution that some issues might still ruin everything, such as new American or Chinese chip taxes complicating access to unusual materials for chip production.
News at a Glance
- Samsung set to post 10.1 trillion won profit for July to September
- This would be Samsung’s highest third-quarter profit since 2022
- Ordinary memory chip prices soared 171.8% from a year ago
- Firms are purchasing additional chips for servers to support smart computer software
- Samsung lagged behind in selling the latest special HBM chips to Nvidia
- Stock rose 43% after reporting a Tesla chip deal in July
- Samsung did deals with OpenAI and Tesla for future chip sales
- Experts fear potential new taxes and China export issues
FAQs
- How much profit is Samsung supposed to make this quarter?
Approximately 10.1 trillion won, or around 7.11 billion dollars, for July to September.
- Why are the profits of Samsung rising?
The prices of memory chips rose as firms are purchasing more for servers.
- What are Samsung HBM chips?
Unique stacked-up chips are utilised in intelligent computer programs.
- Which large firms is Samsung selling chips to?
Samsung has contracts with Tesla and OpenAI to ship chips.
- When will Samsung report its actual profit figures?
Samsung will report the true figures on Tuesday, October 14.
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