Samsung Electronics Co (OTC:SSNLF) is projected to witness a significant rise in its first-quarter operating profit, but its stock has underperformed due to HBM.
What Happened: The South Korean tech giant’s first-quarter operating profit is expected to reach 6.6 trillion won ($4.9 billion), marking a tenfold increase from the same period last year. This surge indicates a recovery in the memory semiconductor market, which has been in a slump for the past two years, Reuters reported on Wednesday.
Analyst Kim Roko from Hana Securities pointed out that Samsung’s stock has underperformed due to HBM, despite the company’s efforts in this area. “Samsung is working hard on HBM, but nothing is visible yet…Compared to competitors, Samsung stock has underperformed due to HBM,” said Roko.
“It may be difficult to increase market share with the 8-layer HBM3E currently being released, but no company has yet received approval for the 12-layer version expected near year-end. I think Samsung may pass on what it has not been able to do and win with more advanced products.”
See Also: Full story available on Benzinga.com