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The cost of memory, the prospects for semiconductors affect stocks, not smartphones



A woman walks past the Samsung Electronics logo at the Seocho building in Seoul on January 30, 2020.

Jung Yeon-je | AFP via Getty Images

Samsung Electronics will release its latest flagship Galaxy smartphones on Thursday, earlier than expected.

But that’s not why analysts are bullish on stocks. Unlike 7 or 8 years ago, Samsung’s market performance today is largely determined by its semiconductor unit, analysts say. And they like the way it looks in 2021

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“Samsung shares are now more correlated with the prospects of its semiconductor business, which we expect to account for 61% of its operating profit, compared to the smartphone business, which is expected to represent only 24% of its operating profit this year. , “said Sanjaev Rana, an analyst at CLSA.


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