Campling said that he expects the semiconductor division to pull in 17.5 trillion won or $15.13 billion of revenues, which is ahead of analyst estimates for $14.4 billion of revenues for Intel’s entire business. The analyst has a buy rating on Samsung’s stock and a sell rating on Intel.
A number of trends are driving the uptake of so-called NAND and DRAM chips Samsung produces which can be used in devices such as laptops and smartphones, through to data centers.
Prices for these semiconductors have been increasing which is helping Samsung’s revenue. At the same time, global DRAM demand is likely to be up 24 percent year-on-year in 2017, outstripping supply, according to KB Securities, with shortages likely to remain in the second half of the year. This is helping to drive prices higher.
At the same time, there is growing demand for servers in data centers and the demand for cloud services and smartphone content.
“Figures of demand associated with data centers have not been accurately estimated, but data usage among consumers is surging, while relevant companies are making larger-than-expected server investments for data analysis and application,” Kim said in a note.