Seoul — Samsung Electronics on Tuesday flagged a a lot smaller-than-feared 0.2% fall in first-quarter working revenue, boosted by stable reminiscence chip gross sales and powerful smartphone demand, partly pushed by prospects involved about US tariffs.
Gross sales of standard reminiscence chips utilized in shopper units similar to smartphones and AI chips doubtless got here in higher than anticipated, with some prospects stockpiling chips forward of potential US tariffs on semiconductors, analysts mentioned.
The world’s largest reminiscence chipmaker estimated an working revenue of 6.6-trillion gained ($4.49bn) for the January-March interval, nicely above a 5.1-trillion gained LSEG SmartEstimate.
That might evaluate with 6.61-trillion gained in the identical interval a 12 months earlier and 6.49-trillion gained within the previous quarter.
“Whereas common reminiscence costs dipped, robust demand from prospects trying to safe stock forward of potential US tariffs helped enhance Samsung’s reminiscence chip shipments, supporting general efficiency,” mentioned Greg Roh, head of analysis at Hyundai Motor Securities.
Shares of Samsung rose 2.6% in morning commerce after its preliminary earnings, outperforming a 1.6% rise within the benchmark KOSPI.
Samsung, reshuffling its high ranks after the sudden demise of co-CEO Han Jong-Hee final month, is anticipated to launch detailed outcomes on April 30.
Final week, US President Donald Trump introduced a slew of reciprocal tariffs on buying and selling companions, together with China. Whereas semiconductors have been exempted from reciprocal tariffs, Trump on Thursday reiterated plans to levy tariffs on chips quickly.
Roh mentioned Samsung’s AI options within the Galaxy S25 smartphone fashions helped drive robust gross sales, including that pre-emptive smartphone shipments by North American prospects forward of the tariffs doubtless contributed to first-quarter outcomes.
Samsung Electronics in January unveiled its latest Galaxy S25 smartphones, hoping their upgraded AI options may reinvigorate gross sales and fend off Apple and Chinese language rivals.
On account of patrons stocking up within the first quarter, analysts mentioned shipments are prone to decline within the second quarter.
Kim Solar-woo, a senior analyst at Meritz Securities, mentioned Samsung’s second-quarter working revenue may stagnate additionally attributable to delays in securing new prospects for high-bandwidth reminiscence (HBM) chips.
Analysts estimated that Samsung’s chip division revenue may need halved to about 800-billion gained within the first quarter from a 12 months earlier, as losses within the foundry enterprise doubtless offset earnings from the reminiscence chip enterprise.
The foundry enterprise entails making chips on a contract foundation for purchasers similar to Nvidia, Qualcomm and AMD.
Samsung in January warned of sluggish gross sales of its AI chips within the first quarter attributable to US export restrictions to China, Samsung’s high market. Samsung chair Jay Y Lee was amongst executives who met with Chinese language President Xi Jinping in Beijing at China’s annual convention late March.
At a shareholder assembly in March, Samsung executives apologised for the corporate’s poor share worth stemming from its late response to the booming AI chip market. They anticipated chip earnings to get better within the second half on demand for smartphones and information centres and because it goals to start out supplying its improved HBM3E 12-high chips to Nvidia in the course of this 12 months.
South Korea’s SK Hynix, the world’s second-largest reminiscence chipmaker, mentioned final month some prospects have introduced ahead orders in preparation for brand new US tariffs, however was cautious of relying on a sustained demand restoration.
Micron Expertise in March forecast third-quarter income above Wall Road estimates, signalling robust demand for its HBM chips utilized in AI fashions.
Reuters
