FILE PHOTO: A visitor uses a Samsung Electronics' flagship smartphone Galaxy S24 during its unveiling ceremony in Seoul, South Korea, January 15, 2024. REUTERS/Kim Hong-Ji/File Photo
In addition to higher chip prices, the better-than-expected profit likely reflected Samsung reversing its previous inventory writedowns on its books, as the value of its chip inventory has rebounded in accounting terms, analysts said. Explosive demand for high-end DRAM chips such as high bandwidth memory chips used in AI chipsets, as well as chips used in data centre servers and gadgets that run AI services have helped buoy chip prices, analysts said.
"At the earnings call at the end of the month, we will be interested in Samsung's outlook on legacy chips, which will be a sign for whether this chip industry recovery can last into next year," said Ko Yeongmin, an analyst at Daol Investment & Securities. Investors are awaiting news of whether Samsung's latest fourth-generation HBM chips will receive approval to supply Nvidia after they failed earlier tests due heat and power consumption problems, according to sources.
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