By Robert Guy
Samsung Electronics (005930.KR) will release its second quarter guidance on Friday and it’s expected to show the South Korean company will surpass Intel (INTC) to become the world’s biggest semiconductor maker by revenue.
While many analysts will be focused on how sales of the Galaxy 8 have been going, Samsung’s semiconductor business is also a source of earnings strength as demand is boosted by the growth in smartphones. Reutershas the details about what to expect from the guidance:
The South Korean tech giant, Asia’s third-largest company by market capitalization, is now poised to knock Intel off the top of the global semiconductor market-share rankings for the first time since 1991.
“From the second quarter, Samsung will become No. 1 in market share due to the recent increase in data centers and demand for solid-state drives,” NH Investment & Securities analyst Peter Lee wrote in a note to clients.
Samsung’s April-June operating profit is expected to leap 67 percent from a year earlier to 13.1 trillion won ($11.4 billion), a new high, according to the average forecast from a Thomson Reuters survey of 18 analysts.
Shares in Samsung Electronics are up 32% this year.