Samsung's Profit Just Rose Nearly Ninefold on Memory Chips
The result topped 100 trillion won for the first time as surging AI chip demand and tight supply lifted margins, analysts said.
- On Thursday, Samsung Electronics shares closed lower despite the Korean chipmaker estimating a record third-quarter operating profit of 107.4 trillion won. Shares have fallen about 30 percent from their June peak.
- Foreign investors have been net sellers for eight consecutive sessions since Sept. 28, while institutional investors also offloaded shares. Retail investors continued buying during the session.
- Douglas Kim of Douglas Research Advisory said investors were disappointed by Samsung Electronics' announcement of "just" 30 trillion won in dividends and 15 trillion won in share buybacks. Kim argued for greater buyback allocation.
- Puckrin, cross-asset analyst and founder of Coin Bureau, warned that "the insane returns investors have enjoyed so far are likely a thing of the past." Market sentiment remains skeptical despite record earnings.
- Sanjeev Rana, head of North Asia semiconductor research at CLSA, contends "this memory upcycle is bigger than all the previous cycles" and will last longer as supply catches demand. This contrasts with near-term skepticism.
21 Articles
21 Articles
South Korean electronics company Samsung benefits from the AI boom: the huge demand for memory chips brings the company a huge quarterly profit of more than 70 billion euros.
Almost 72 billion euros in a quarter - never before has a tech company earned as much as now Samsung. For the South Korean company it was the fourth record profit in a row, driven by the chip business
Samsung's Profit Just Rose Nearly Ninefold on Memory Chips
Samsung just posted its best quarterly profit ever, and the number is so large it changes what investors thought they knew about the memory chip cycle. Here is what it means for Micron and SanDisk before either company reports again.
The world’s largest manufacturer of these semiconductors estimated that the operating profit from July to September was 107.4 billion won (80.1 billion dollars), an increase of 782.5% compared to the previous year, according to a statement from the company. It is the first time that a South Korean company has exceeded 100 billion won in quarterly operating profit. Meanwhile, it is estimated that revenues increase by 127% to reach 195 billion won…
Samsung Electronics, which leads the domestic stock market with the highest market capitalization in the securities market, announced its biggest quarterly operating profit of over 100 trillion won on the 8th, but COSPI fell by 2.62% and was unable to overcome the sluggishness. The securities market interprets it as “sell-on” (a phenomenon where sales volume is poured out when good news or disclosure is announced)
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