Data center demand is expected to offset any weakness seen in the smartphone market, according to Mark Newman, managing director and senior analyst at Sanford C. Bernstein.
“Data center spend is huge,” Newman told CNBC’s “Squawk Box,” adding that many tech companies are “expanding capacity in data centers very, very vastly. And that needs lots more memory, particularly DRAM. So that’s actually at the moment more than offsetting the weakness in handsets.”
Newman added that Samsung would still remain the “undisputed leader in memory.”
Samsung posted an operating profit of 15.64 trillion Korean won ($14.45 billion) for the three months that ended March — in line with an earlier estimate and a 58 percent on-year jump.
The world’s largest smartphone vendor’s consolidated revenue came in at 60.56 trillion won. The company said its first-quarter revenue was mainly driven by its memory chips business and the increased sales of its flagship smartphones such as the Galaxy S9.