Samsung on track to take Intel’s chip crown with record second-quarter earnings

Samsung on track to take Intel’s chip crown with record second-quarter earnings

SEOUL (Reuters) – Samsung Electronics Co Ltd is expected to report its best quarterly profit in the second quarter with an increase in memory chip sales that pushed it ahead of Intel Corp. as the largest semiconductor maker for sales for the first time.

The world’s largest memory chip maker is one of the biggest beneficiaries of the high-demand processing power shot on smartphones and servers, which fueled a supermarket amid an industry’s limited supply growth.

Underlining its dominant position, Samsung said Tuesday it plans to invest approximately $ 18.6 billion in South Korea as it seeks to extend its lead in next-generation memory chips and smartphone screens.

South Korea’s giant technology, the third company in Asia in market capitalization, is now ready to hit Intel for the first time in the market share of the world semiconductor ranking, for the first time since 1991.

“Starting in the second quarter, Samsung will become number one in market share due to the recent increase in data centers and application of static disks,” said Peter Lee, an analyst at NH Investment & Securities in a note to customers .

Samsung’s operating profit between April and June is expected to jump 67% over the previous year, 13.1 billion won ($ 11.4 billion), a record, according to the average forecast of a Thomson Reuters poll. Of 18 analysts.

The same study states that earnings from July to September will be even higher than 13.8 trillion won.

Strong sales of Galaxy S8 smartphones released in April odds have provided an additional boost, enabling Apple to become the world’s largest maker of smartphones.

The performance of the S8 assured investors whose nerves were shaken last year by the costly disposal of the Samsung Galaxy Note 7 through the batteries of propulsion by the fire.

Samsung shares to a record 2.35 million won every Tuesday. They have gained 30 percent this year, plus a 43 percent increase in 2016.

In progress

“The Galaxy S8 series was released for more than 2 months and we see a strength similar to that of the Galaxy S7 series,” said Tom Kang, a counterpoint analyst.

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