"Significant Improvement in Performance Expected"
NepesArc is showing strong performance. The news that Qualcomm's 'Snapdragon 8 Gen 3' and Samsung's 'Exynos 2400' have been adopted as the application processors (AP) ? the 'brains' of the Galaxy S24 ? appears to be influencing the stock price. The Snapdragon 8 Gen 3 is Qualcomm's first generative AI-specialized chipset, and the Exynos 2400 is also a next-generation AP designed to support AI computations. NepesArc has a history of securing Exynos test orders along with Doosan Tesna and LB Semicon.
As of 9:45 AM on the 8th, NepesArc was trading at 29,650 KRW, up 3,000 KRW (11.26%) from the previous trading day.
Kwack Min-jung, a researcher at Hyundai Motor Securities, explained, "The power management semiconductor (PMIC), application processor (AP), display driver IC (DDI), and radio frequency (RF) components that NepesArc is testing show the highest correlation with smartphones. We expect a significant improvement in NepesArc's performance due to the overall increase in volume, driven by the expansion of high-end Exynos adoption and the reintroduction of the FE series after three years in major clients' 2024 smartphones."
He added, "Looking at the AI smartphones soon to be released by Google, China's Xiaomi, Vivo, Oppo, and Huawei, they are equipped with LLM functions that automatically generate and respond to answers in real time based on the situation. This is more understanding of user commands than traditional voice assistants that rely on pre-set databases," he analyzed.
He further noted, "These devices are equipped with functions to search and summarize information, generate text, and edit images. Considering the application cases, the increase in test time due to on-device AI will also lead to a significant turnaround in NepesArc's performance."
Samsung Electronics officially declared that the upcoming Galaxy S24 series, unveiling on the 17th (local time), will be the world's first AI smartphone. Just as Samsung opened the large-screen smartphone market with the Galaxy Note in 2011 and led the foldable phone market starting with the Galaxy Z Fold in 2019, the company plans to lead the 'AI phone' market with the Galaxy S24.
The Galaxy S24 series (standard, Plus, Ultra) is expected to be a 'hybrid AI smartphone' supporting both cloud-based AI and 'on-device AI.'
Last year, Samsung Electronics announced that it will supply the 'Exynos Auto V920,' a processor for in-vehicle infotainment (IVI), to Hyundai Motor around 2025. It is unusual for Samsung to disclose supplying a specific chip to a particular company. Publicly naming Hyundai as a client is interpreted as an external signal that the alliance between the two companies has strengthened.
Samsung Electronics and Hyundai Motor have made a bold announcement to interconnect as if they were a single brand. They plan to expand the interoperability of the 'SmartThings' platform to connected cars. By collaborating on SmartThings, Hyundai and Samsung are forming an alliance that extends from hardware to software. This move appears to be aimed at competing against big tech companies like Tesla and Apple.
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