Everyone knows Samsung as a brand of smartphones or home appliances, but who knew, before the Covid pandemic, Samsung is strong in semiconductor chips?

Skyrocket in 2020

The shortage led to major price increases, which benefited chip manufacturers like Samsung & Taiwan-based TSMC. Less chip supply plus more demand equals higher prices.

From April 2020 till the end of that year, Samsung’s stock price nearly doubled.*

Company´s performance on 5 years time frame. Source: tradingview.com

It enjoyed higher pricing for its highly-demanded consumer electronics amid soaring demand for electronics like computers & smartphones.

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In the latest quarter, Samsung delivered spectacular results:

·      Sales: $59.7 billion, up 22% year-over-year

·      Operating profit: $10.8 billion, up 12% year-over-year

Moreover, according to Zetano broker, the company re-enforced its market position as a pioneering leader. It became the first to mass-produce the small, powerful & productive 3-nanometer microchips, to compete against fierce rival TSMC.

Challenge in 2022

Keep in mind that the tech tycoon will be challenged in the coming months. Central banks are hiking interest rates to combat inflation, which reduces the appetite to spend & invest. As a result, Samsung’s smartphone business was dealt a heavy blow.

Samsung results

Trading 21% lower in 2022, the Samsung stock (SMSN.IL) was hit hard by the war in Ukraine, soaring oil prices and rocketing inflation.* Will Samsung recover from its downfall?

 

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ZETANO is a registered brand name of Wonderinterest Trading Ltd, with registration number HE 332830. Wonderinterest Trading Ltd is a Cypriot Investment Company (CIF) under the supervision and regulation of the Cyprus Securities and Exchange Commission (CySEC) with licence number 307/16, registered office 176, Makariou III Avenue, Paschalis Court, Office 201, 3027, Limassol, Cyprus.

 

* Past performance is no guarantee of future results.