Wednesday, February 8, 2023
  • About
  • Privacy Policy
  • Editorial Principles
  • Why to trust us
  • Contact
Scoop Nova
  • Home
  • Business
  • Technology
  • Scandals
  • Politics
Scoop Nova
  • Home
  • Business
  • Technology
  • Scandals
  • Politics
No Result
View All Result
Scoop Nova
Home Technology

Memory prices to weigh on profit

admin by admin
January 5, 2023
in Technology
0
Memory prices to weigh on profit
588
SHARES
3.3k
VIEWS
Share on FacebookShare on Twitter

You might also like

Microsoft will offer ChatGPT tech for companies to customize: source

Elon Musk says Twitter is ‘trending to breakeven’ after near bankruptcy

Nasdaq notches five-week streak: Longest since November 2021

Samsung faces pressure from plummeting memory prices, impacting key earnings that drive its DRAM and NAND businesses.

Josep Lago | AFP | Getty Images

Samsung’s Earnings could take a nosedive when it reports fourth-quarter earnings guidance this week, as prices of key memory chips continue to plummet amid weak demand.

Analysts expect Samsung to report an operating profit of 7.18 trillion Korean won ($5.64 billion) in the December quarter, according to Refinitiv consensus estimates. This represents a nearly 50% decrease compared to Q4 2021.

Related investment news

CNBC Pro

However, some analysts are more bearish than the consensus.

Analysts at Macquarie Research expect Samsung to report an operating profit of 5.5 trillion won in the fourth quarter. This is his lowest since the third quarter of 2016. Analysts at Daiwa Capital Markets see operating profit at 4.9 trillion won, up 65% year-on-year. It will plunge to its lowest level since Q4 2015.

The pessimism stems from the plummeting memory prices. Samsung is the world’s largest player in so-called NAND and DRAM chips, which are used from devices such as laptops and smartphones to data centers.

NAND and DRAM prices plummeted in the fourth quarter. lack of demand For end-use products such as PCs. This has left electronics makers and other companies using such chips in inventory, further reducing demand for Samsung’s chips.

Analysts at Macquarie said in a note issued on Tuesday that Samsung was not exempt from the “memory market carnage.”

“The magnitude and speed of the memory price decline is comparable to the global financial crisis of 2008,” said Macquarie.

“A detrimental combination of weak final demand and excess channel inventories has resulted in the highest inventory levels not seen in a decade,” he added.

Analysts expect Samsung’s NAND business to be loss-making in the fourth quarter, while DRAM is “likely to have very thin margins” in the first half of 2023.

Samsung’s semiconductor business, which includes NAND and DRAM, accounts for nearly 50% of the company’s operating profit. Therefore, any hit to the memory division would have a significant impact on the company’s reported overall earnings.

Analysts also expect weakness in other parts of Samsung’s business, including smartphones, which could weigh on earnings.

Samsung is expected to release its fourth-quarter earnings and earnings guidance on Friday before its full financial report is expected later this month.

Recovery first?

Analysts at Macquarie and Daiwa believe the first half of the year will be tough for Samsung as the pressure on memory prices continues.

However, according to Refinitiv’s consensus forecast, earnings could bottom out in the second quarter of 2023.

Daiwa analysts say earnings will recover in the second half of 2023 “along with memory cycle improvements and a recovery in mobile demand.”

Analysts at Macquarie said the drop in memory prices “tends to offer memory leaders an opportunity to come back stronger in a new cycle.”

“History also shows that investors should not wait until cyclical upturns begin. Electronics) is recommended.”

Tags: Business newscomputer memoryearningsLtd.MemorypricesprofitSamsung Electronics Co.Semiconductor device manufacturingtechnologythe internetweighWorld economy
Previous Post

Retailers brace for tougher times and more frugal customers in 2023

Next Post

EU requires travelers from China to take Covid test before entering Europe

admin

admin

Related Posts

Microsoft will offer ChatGPT tech for companies to customize: source
Technology

Microsoft will offer ChatGPT tech for companies to customize: source

by admin
February 8, 2023
Elon Musk says Twitter is ‘trending to breakeven’ after near bankruptcy
Technology

Elon Musk says Twitter is ‘trending to breakeven’ after near bankruptcy

by admin
February 6, 2023
Nasdaq notches five-week streak: Longest since November 2021
Technology

Nasdaq notches five-week streak: Longest since November 2021

by admin
February 4, 2023
Meta earnings Q4 2022
Technology

Meta earnings Q4 2022

by admin
February 2, 2023
TikTok CEO to testify before House panel in March
Technology

TikTok CEO to testify before House panel in March

by admin
January 31, 2023
Next Post
EU requires travelers from China to take Covid test before entering Europe

EU requires travelers from China to take Covid test before entering Europe

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

Singapore’s VC scene looks set for a ‘pretty decent’ 2023: SGInnovate

Singapore’s VC scene looks set for a ‘pretty decent’ 2023: SGInnovate

December 30, 2022
65,000 war crimes committed, prosecutor general says

65,000 war crimes committed, prosecutor general says

February 2, 2023

Categories

  • Business
  • Politics
  • Technology

Don't miss it

Amazon dials back air cargo service as demand cools, contractor says
Business

Amazon dials back air cargo service as demand cools, contractor says

February 8, 2023
Microsoft will offer ChatGPT tech for companies to customize: source
Technology

Microsoft will offer ChatGPT tech for companies to customize: source

February 8, 2023
Hong Kong to give away half a million air tickets to boost tourism
Business

Hong Kong to give away half a million air tickets to boost tourism

February 6, 2023
Elon Musk says Twitter is ‘trending to breakeven’ after near bankruptcy
Technology

Elon Musk says Twitter is ‘trending to breakeven’ after near bankruptcy

February 6, 2023
U.S. military shoots down suspected Chinese surveillance balloon
Politics

U.S. military shoots down suspected Chinese surveillance balloon

February 6, 2023
Sell some shares in this bull market
Business

Sell some shares in this bull market

February 4, 2023
Scoop Nova

Scoop Nova is the only worldwide news organization with a European perspective, and it’s where the rest of the world goes to hear what the World has to say.

Categories

  • Business
  • Technology
  • Scandals
  • Politics

Quick Links

  • About Scoop Nova
  • Contact us
  • Editorial Principles
  • Why to trust us
  • Privacy Policy
  • Sitemap

Recent News

Amazon dials back air cargo service as demand cools, contractor says

Amazon dials back air cargo service as demand cools, contractor says

February 8, 2023
Microsoft will offer ChatGPT tech for companies to customize: source

Microsoft will offer ChatGPT tech for companies to customize: source

February 8, 2023

© Copyright 2022 ! All rights are reserved by scoopnova.com

  • Home
  • Business
  • Technology
  • Scandals
  • Politics

© Copyright 2022 ! All rights are reserved by scoopnova.com