Explained: Why Did Samsung Shares Crash 10% Even After Tech Giant Forecast 19x Jump in Profit
Investors sold after Samsung said second-quarter operating profit would jump 19-fold, as analysts warned the AI memory boom may slow.
- On Tuesday, Samsung Electronics reported a record 89.4 trillion won in second-quarter operating profit, a 19-fold increase driven by the AI data center boom.
- Samsung's profit surged even as it set aside sizeable bonuses for semiconductor workers under a May wage deal linking pay to operating profit.
- Analysts noted that without bonus provisions, operating profit would have exceeded 100 trillion won; memory chip prices rose 44% for DRAM and 53% for NAND quarter-on-quarter.
- Investors wiped more than $80 billion off Samsung's market value on Tuesday, with shares dropping 6.9% amid concerns about the sustainability of the AI boom.
- Analysts warn the biggest risk to the memory boom is a slowdown in AI infrastructure investment, as major technology firms brace for "more capex discipline in the near-term.
32 Articles
32 Articles
The estimate points to an operating profit growth of 51 billion euros, exceeding the market forecast by 6.2%. Compared to the previous year, quarterly revenue should increase 129%.
Samsung's record profits aren't enough for investors anymore
Investors sent Samsung shares sharply lower despite the company's record operating profit forecast.SeongJoon Cho/Bloomberg/Getty ImagesSamsung forecast record operating profit, but its stock plunged more than 9%.Sky-high expectations are making it harder for AI winners to impress investors.Nvidia has faced a similar challenge despite posting blockbuster AI-fueled earnings.Samsung Electronics signaled another blockbuster quarter on Tuesday, forec…
The Economic Times
Times of IndiaExplained: Why did Samsung shares crash 10% even after tech giant forecast 19x jump in profit
Samsung Electronics shares plunged 10% despite forecasting a 19-fold jump in second-quarter profit, as investors worried the AI-driven memory chip boom may be peaking. Analysts said strong earnings were already priced in, while concerns over slowing AI infrastructure spending triggered a sharp sell-off across semiconductor stocks.
Samsung is still on a record wave: the South Korean electronics giant has set a true record quarter with the aid of the AI boom. Revenues are so huge that the Group is faced with internal distribution debates. In the second quarter, Samsung earned slightly more than 89 trillion won (around 51 billion euros) operatingly – more than ever before. This was reported by the Group on the basis of preliminary figures. Compared to the second quarter of t…
The operating profit expected for the April-June period is approximately 89.4 trillion won (€51 billion), representing a year-on-year increase of 1,810.3%, the group stated in a regulatory filing. Strong global demand for advanced memory chips used in AI data centers is a boon for major South Korean manufacturers, who are posting record profits and boosting their country's economic growth. This estimate exceeds market forecasts by 6.2% and marks…
Coverage Details
Bias Distribution
- 64% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
