Samsung has posted a record breaking first quarter in terms of profits, which is great news for the company. However, there are some concerns about the future of Samsung’s business, and that’s actually eating into their stock price. It’s not all sunshine and rainbows, unfortunately.
Now, none of this is a concern that Samsung is going to struggle anytime soon. The smartphone maker posted nearly $15 billion in profit, which was stellar. However, part of Samsung’s growing business is on the semiconductor side, and many investors and analysts are worried that we’re going to start to see a decline in demand for DRAM chips while marketing costs for the Galaxy S9 rise.
Samsung makes a ton of memory for other companies, but many experts are predicting that we’re going to start seeing a bigger supply of DRAM just like what happened with NAND last year. That’s good for consumers, but it will mean that Samsung won’t be able to charge quite as much to its customers, marking a peak and burst bubble for the components.
However, even if we are at a DRAM peak, Samsung is on track to have its best annual earnings ever, so I doubt they’re too concerned.