As one of the largest manufacturers of memory chips in the world, an uptick in demand is almost always going to benefit Samsung. With major tech companies projected to significantly increase investments in their data centers, Samsung Electronics surely stands to benefit.
This will certainly provide support to the company’s bottom line as the COVID19 pandemic has led to a sharp decline in demand for other products such as mobile devices and appliances. It could take a while before that demand recovers.
Samsung may see more demand for its memory products
Ace investment bank JPMorgan Chase & Co. has projected in a recent report that Facebook, Microsoft, Google and Amazon are all likely to increase their data center investments by almost 40 percent. Their investments in these facilities has increased 6 percent compared to the previous quarter and 40 percent from the same period last year.
With more and more people working from home in addition to those already sheltering in place, online services have seen considerable load spikes. People are streaming more content, universities and schools are offering online classes, video conferencing services have seen double-digit growth. All of this will fuel a need for increased capacity in data centers.
Samsung has itself pointed out that it stands to benefit from this change in market dynamics. The company mentions in its recent earnings report that it expects to see a higher demand for memory chip products for data centers and servers.
Given that the memory chip business already happens to be the company’s cash cow, this should help shore up the company’s balance sheet as it tackles the pandemic’s effect on its business.
The post Samsung stands to benefit from ongoing data center expansions appeared first on SamMobile.
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