Samsung will be fine: NVIDIA Ampere production will bring at least $ 1 billion

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Last updated on December 8th, 2022 at 02:25 pm

Samsung will be fine: NVIDIA Ampere production will bring at least $ 1 billion

The beginning of September revealed several important trends at once that will drive Samsung Electronics’ revenue growth. Experts believe that the Korean company will gain at least $ 1 billion under the contract for the production of NVIDIA graphics processors. In the next half of the year, prices for memory will go up, and Huawei’s problems will help Samsung gain a foothold in the smartphone market.

galaxy-z-fold-2
galaxy-z-fold-2

As noted by CNBC, the consensus of analysts mentions the possibility of a rise in the share price of Samsung Electronics by 29% in the next twelve months. Daiwa Capital Markets cites an even bolder estimate of 50% gains from the current level. First, a contract with NVIDIA for the production of a gaming line of Ampere graphics processors using 8nm technology alone will bring the Korean contractor up to $ 1 billion in revenue.

Secondly, the fall in prices for memory microcircuits should stop by the next half of the year, this will be reflected in the profile business of Samsung in the best way. Thirdly, the Galaxy Fold Z with a foldable display introduced this week, although it is the third attempt in a row to instill fashion on such devices, may become the most commercially successful of them. This year, according to experts, foldable smartphones will account for up to 2-3 million items out of a total circulation of 250 million Samsung smartphones. Already next year, the volume of sales of such devices will grow to 8-9 million copies. By 2022, foldable smartphones will no longer be exotic, according to CLSA experts.

Finally, Huawei’s problems with the release of smartphones due to US sanctions should positively affect Samsung’s core business, allowing the Korean company to strengthen its position. Samsung will feel the main effect of the redistribution of the smartphone market not earlier than next year.

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