In the year 2023, Samsung encountered difficulties such as a drop in smartphone sales and reduced demand for semiconductor and flash memory chips. Consequently it surrendered its position as the global handset shipments leader to Apple. However, Samsung is making a comeback in 2024 supported by a report revealing that the company’s market value has reached $370 billion matching levels seen back in 2021. This resurgence indicates positive developments are unfolding for the company.
All You Need to Know About Samsung’s Comeback
As reported by Korea Joongang Daily, the rise in Samsung’s worth to $370 billion was largely influenced by investors who acquired around $4.2 billion worth of stocks over an 11-day period from March 19 to April 2. Conversely, retail investors sold $5.04 billion in stocks during the timeframe. This boost in investor confidence is credited to signs from the semiconductor sector. With Samsung’s expertise in producing chips at scale and flash memory among technologies, investors are feeling optimistic.
The tech giant recently introduced its cutting-edge HBM3E memory technology for AI GPUs. NVIDIA CEO Jensen Huang verified that this bandwidth memory is currently undergoing qualification processes and is expected to be shipped this year. In addition, Samsung aims to launch the Mach 1, their AI accelerator by 2025. At the time they are set to provide NVIDIA with GDDR7 VRAM chips for the RTX 5000 series of gaming GPUs.
These advancements are believed to play a role in analysts predicting that Samsung’s revenue for the quarter may hit $61.08 billion showing a 14 percent rise, from years’ figures during the same timeframe. Operating profit is projected to reach $4.35 billion, a staggering 711 percent rise from the previous year. Samsung aims to further reduce expenditure, intending to adopt a dual-chipset launch strategy for the Galaxy S25 series in 2025, akin to its approach with the Galaxy S24 lineup utilizing the Exynos 2500 and Snapdragon 8 Gen 4.
In 2023, Samsung incurred significant costs by exclusively launching the Galaxy S23 range with the Snapdragon 8 Gen 2 chipset, amounting to a $9 billion bill for chipset purchases alone. Hence, the current strategy aims to mitigate unnecessary expenses and enhance financial performance moving forward.
FAQs
Why did Samsung’s market capitalization reach $370 billion?
Samsung’s market capitalization surged due to positive trends in the semiconductor industry, robust sales of the Galaxy S24 series, and advancements in memory chip technology like HBM3E.
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How is Samsung working to enhance its financial performance?
Samsung aims to reduce costs by adopting a dual-chipset launch strategy for the Galaxy S25 series, similar to its approach with the Galaxy S24 lineup. This strategy helps mitigate chipset procurement expenses and improve financial stability.
