April 26, 2024

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[THE INVESTOR] Korean semiconductor powerhouses Samsung Electronics and SK hynix saw their stock price rise on Oct. 10, the first trading day after the 10-day Chuseok holiday.

Samsung’s shares increased 4.6 percent to 2,682,000 won (US$2,354) in early morning trading while SK hynix’s shares hit an all-time high of 90,000 won, up 8.56 percent.

Samsung shares ended up 2.96 percent at 2,640,000 while those of SK hynix came in at 88,700 won, up 7 percent. 

Market analysts recently offered a positive outlook on the robust sales of the two chipmakers in the second half of the year thanks to increasing demand for semiconductors, including DRAM and NAND flash memory chips.

“Although the new iPhones have been short of boosting demand for chips worldwide, high demand for chips in the Chinese smartphone, PC and server sectors will continue to drive up semiconductor prices,” Kim Yang-jae, an analyst from KTB Investment & Securities, said in an investment report.

In line with the booming chip market, the profits of Samsung and SK hynix-- the first and second largest DRAM makers in the world, respectively -- will further improve in the coming months, the analyst forecast.

According to data compiled by market research firm FnGuide, Samsung’s operating profit in the third quarter will come in at 14.3 trillion won, up 175.7 percent on-year.

The operating profit from the semiconductor division will likely stand at 10.5 trillion won, accounting for 73 percent of Samsung’s entire operating income.

Riding the momentum, the annual operating profit of the tech giant is expected to cross the 50-trillion-won mark this year for the first time.

The chip-making unit of SK Group is anticipated to see its operating profit surge a whopping 427 percent to 3.8 trillion won in the third quarter with its annual operating profit surpassing 10 trillion won this year.

Samsung is scheduled to announce its earnings guidance on Oct. 13 while the SK Group subsidiary will publish its own guidance report later this month.

By Kim Young-won (wone0102@heraldcorp.com)