Chip stocks are on the up after Samsung and STMicro issue positive updates

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  • European chip stocks rose on Friday after Samsung and STMicroelectronics issued positive updates.
  • German chipmaker Infineon, Dutch semiconductor machine maker ASML, and Austrian sensor maker all saw their share prices rise more than 2% in morning trading on European stock markets.
  • Meanwhile, STMicro saw its share price rise more than 4% when it announced higher-than-expected fourth-quarter sales.

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European semiconductor shares rose on Friday after two of the industry’s biggest companies – Samsung Electronics and STMicroelectronics – issued positive fourth-quarter updates.

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German chipmaker Infineon, Dutch semiconductor machine maker ASML, and Austrian sensor maker Ams AG all saw their share prices rise more than 2% in morning trading on European stock markets.

Meanwhile, STMicro saw its own share price rise more than 4% after publishing higher-than-expected fourth-quarter sales on Friday.

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The French-Italian chipmaker announced early fourth-quarter revenue of more than $3.5 billion, well above the company’s forecast of $3.4 billion.

STMicro sales for the full year stood at $12.76 billion, up 24.9% over the previous year.

Elsewhere, Samsung estimated Friday that its fourth-quarter operating profit jumped 52% as a result of strong demand for its memory chips and rising orders for its contract chip manufacturing services.

If the predictions are accurate, the last quarter will be the South Korean tech giant’s best final quarter since 2017.

The world’s largest smartphone and memory chip maker said it expects profit of about $11.5 billion in the last quarter ended December. It will release its full numbers later this month.

The demand for chips has increased over the past two years due to the coronavirus pandemic due to global chip shortages. This resulted in increased delivery times on a range of products, including cars and the new PlayStation 5.

This has led to a significant increase in the shares of some semiconductor companies during the chip shortage.

For example, ASML, which sells highly complex “lithography” chip-making machines for the likes of Samsung, Intel and TSMC, has seen its share price on Amsterdam’s stock exchange rise 66% over the past year. .

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