How Apple and Nvidia Could Boost Samsung's Financial Landscape?

Analysts predict a nearly 80% drop in Samsung Electronics Co, Ltd SSNLF third-quarter earnings, primarily due to challenges in the semiconductor segment. 

The forecasts anticipate an operating profit of 2.3 trillion Korean won ($1.7 billion), marking a 78.7% decline year-on-year, and revenue of 67.8 trillion won, down by 11.6%. 

Samsung, the world's leading memory chip and smartphone manufacturer, is grappling with falling memory chip prices resulting from an oversupply and reduced demand for smartphones and laptops, CNBC reports.

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The semiconductor business, usually Samsung's profit generator, is forecasted to incur a loss exceeding 3 trillion won in the third quarter. Despite reducing production to stabilize prices, the third-quarter results will not likely reflect the impact. 

However, there are potential positives. Samsung's display business might experience growth due to the launch of Apple Inc's AAPL iPhone 15 series, and the smartphone unit could benefit from the release of high-end foldable phones in July.

For the fourth quarter, analysts project an operating profit of 3.8 trillion won, an 11.5% year-on-year decline, indicating a potential recovery. Daiwa's analyst SK Kim, anticipates an easing inventory glut and rising memory prices. A partnership with Nvidia Corp NVDA to supply advanced memory chips for AI applications could bolster Samsung's performance. The analyst is optimistic about the opportunities emerging from the growing AI demand in 2024.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.