July 8, 2022: -On Thursday, Samsung shares surged, which dragged Asian chipmakers higher following the South Korean technology giant posted “better than feared” earnings guidance for the dual quarter.

The numbers assuaged investors’ concerns about increasing inflation, deteriorating consumer demand, and higher material costs for semiconductor firms. Although, analysts warned that demand weakness would not have entirely run its course.

This year, chip stocks have been beaten by a tornado of concerns, which includes supply chain disruptions, the Russia-Ukraine war, increasing material costs, and rampant inflation that risks consumer demand for products such as smartphones. A few days before Samsung’s earnings guidance, U.S. chipmaker Micron alerted the softening demand for consumer products.

That set the backdrop for the results of Samsung.

On Thursday, Samsung was up over 3% after saying it expects second-quarter revenue to rise 22% yearly to 77.78 trillion Korean won, in line with expectations. Operating profit is anticipated to grow around 12% to 14.12 trillion Korean won, though that gradually grew over two years and missed expectations.

Nevertheless, the results were “better than feared,” SK Kim, an analyst at Daiwa Capital Markets, told CNBC on Thursday.

Samsung’s profits guidance brought on a rally in other Asia semiconductor stocks on Thursday. Taiwan Semiconductor Manufacturing, one of the huge chipmakers of the world, rallied 5%, while rival United Microelectronics Corporation was up over 7%. South Korea’s SK Hynix was almost 2% higher.