"Samsung Electronics’ Partnership with Broadcom Is Just the Beginning... Secures Market Leadership"[Click e-Stock]

On July 28, Meritz Securities stated that Samsung Electronics is expanding its leadership in memory pricing, and that the recent agreement with Broadcom is only the beginning.

According to a report by Sunwoo Kim, an analyst at Meritz Securities, Samsung Electronics’ preliminary operating profit for the second quarter increased by 56.2% compared to the previous quarter, reaching 89.4 trillion won, demonstrating the strongest profitability growth among memory competitors. He explained that this result was due to memory pricing and shipments significantly outperforming the industry average.

In the semiconductor (DS) division, even after accounting for special management performance bonuses, the memory business division’s operating profit amounts to 92 trillion won. LSI and foundry divisions are expected to show improved performance, with operating losses contained at just over 2 trillion won. The display (SDC) division also performed well with an operating profit of 700 billion won, but the finished product (DX) division is projected to turn to operating losses, as both MX and home appliance businesses are expected to suffer deficits.

Kim noted, “At the ‘San Francisco AI Summit,’ a 200 billion dollar business agreement was announced with Broadcom,” and diagnosed that, “Samsung Electronics’ leading position in a variety of high bandwidth memory (HBM) and server DRAM long-term agreements (LTA) will be further strengthened going forward.” He added, “The memory market’s supply shortage due to a lack of clean rooms is likely to deepen until the end of next year, and a clear shareholder return policy within the fourth quarter of this year is expected to drive a revaluation of the stock.”

This content was produced with the assistance of AI translation services.