Samsung Electronics (GB:SMSN) third-quarter results showed signs of demand recovery for its semiconductor business. Q3 operating profit increased by a massive 262.6% from the previous quarter. Further, the multinational electronics company’s revenue in the third quarter grew 12% to KRW 67.40 trillion. The top-line growth was aided by new smartphone releases and higher sales of premium display products.
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Segment-wise, the losses at the Memory unit fell sequentially on higher sales of premium value-added products and an increase in average selling prices. Meanwhile, the company’s smartphone and display-panel businesses delivered a robust performance driven by seasonal demand and the introduction of new products by major smartphone manufacturers.
Looking ahead, the company anticipates memory chip demand to grow in the fourth quarter, driven by product launches by its customers and rising demand for generative AI. Additionally, Samsung expects chip prices to increase sequentially in the fourth quarter. This optimism is based on expectations that smartphone and PC manufacturers have likely reduced their inventory levels and begun purchasing chips.
Are Samsung Shares a Good Buy?
Samsung’s strong presence in the consumer electronics business and memory chip sector, including those used in AI products, positions it well for sustained long-term growth. Furthermore, expectations of a rebound in memory chip demand and improving financials are encouraging. Year-to-date, the stock has gained 16%.
