Samsung Set for Strong 2024 Rebound as Semiconductor Demand Recovers

Samsung Electronics (KRX: 005930) is expected to see a strong revenue rebound in 2024, led by a recovery in its Device Solutions (DS) segment, the company’s second-largest revenue driver. The DS unit, which encompasses Samsung’s semiconductor business, faced significant challenges in 2023 as memory chip prices plunged amid rising inflation and weakening demand. This, combined with broader softness across the company’s other segments, contributed to a -14% year-on-year decline in total revenue, which fell to KR₩259 trillion.

However, analysts’ consensus from Visible Alpha points to a sharp turnaround in 2024, forecasting a +18% increase in total revenues to KR₩307 trillion, with the DS segment anticipated to grow by +70.6% year-over-year. Analysts attribute this growth to stronger demand for memory products such as DRAM and NAND, driven by the increasing integration of AI in PCs and mobile devices, as well as rising server demand. Revenue from Samsung’s largest division, the Mobile eXperience and Networks (MX/Networks) segment, is also set for a modest recovery, with a +6.1% year-on-year estimated growth, following a -7% decline in 2023. By 2025, DS is expected to surpass MX/Networks as Samsung’s largest revenue segment, with the division projected to grow at a CAGR of 17% between 2024 and 2027.