company announcedSamsung Electronics(Samsung Electronics) reported a bigger-than-expected 21% revenue growth jump, allaying investor concerns about the impact of weak consumer demand and rising material costs on the industry. chips amounting to $550 billion.
In this regard, the results of the largest company in South Korea – Among the first major technology companies to report earnings after a pivotal quarter – driving a rally in Asian stocks on Thursday. While concerns remain about the long-term impact of a possible global recession, investors have taken the expansion of Samsung’s line as a sign that chip stocks may be selling undervalued.
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morning dealings
It is reported that Samsung rose 3.2% in morning trading in Seoul, while memory maker SK Hynix rose 3.4%.
Taiwan Semiconductor Manufacturing jumped 5.4%, and smaller rival United Microelectronics Corp. climbed 9% in Taipei.
The four Asian chip makers gained about $30 billion in combined market capitalization in the morning. Despite this rise, it remains low throughout the year, reflecting the long-term uncertainty.
“Results were less bad than expected; there were significant concerns and earnings estimates were falling. However, the results were within expectations,” said Song Myung Sub, an analyst at HI Investment & Securities.
weaker than expected
Samsung’s tight sales offset weaker-than-expected operating profit, reflecting margin pressures from rising inflation. On Thursday, the company said in a statement that operating profit growth slowed to its lowest in more than two years, reaching 14 trillion won ($10.7 billion) for the three months ending in June. Analysts estimated an average of 14.6 trillion won.
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Sales of 77 trillion won were supported by the South Korean won, which has fallen against the US dollar during the period. Samsung will provide the net income and divisional performance breakdown with its full report at the end of this month.