A woman walks past the Samsung Electronics logo in the company’s Seocho building in Seoul on January 30, 2020.
Jung Yeon-je | AFP via Getty Images
Samsung Electronics will launch its latest flagship Galaxy smartphones earlier than expected on Thursday.
But that’s not why analysts are optimistic about the stocks. Unlike 7 or 8 years ago, Samsung’s market performance today is mainly driven by the semiconductor unit, analysts say. And they love how it looks in 2021.
“Samsung stock is now more correlated with the outlook for the semiconductor business, which is expected to represent 61% of operating profit, compared to the smartphone-related business, which is expected to account for only 24% of operating profit this year,” said Sanjeev Rana, an analyst at CLSA.