Samsung Electro-Mechanics is the only major stock among top market capitalizations to show an increase, despite a downturn in large semiconductor companies.
As of 9:20 a.m. on August 3, Samsung Electro-Mechanics shares rose by 3.77% compared to the previous trading day.
In contrast, among the top five market capitalization stocks, Samsung Electronics fell by 7.43%, SK Hynix by 6.75%, Samsung Electronics Preferred by 4.87%, and SK Square by 2.12%, indicating a general decline in the sector. Samsung Electro-Mechanics continues its upward trend among large-cap stocks.
The company reported strong second-quarter results, buoyed by the AI sector. On July 30, it announced consolidated revenue of 3.4572 trillion won and an operating profit of 440.4 billion won for the second quarter, marking a 24% increase in revenue and a 107% increase in operating profit compared to the same period last year.
The growth was driven by increased sales of AI data center products and high-value automotive components. Sales of multilayer ceramic capacitors (MLCC) for AI servers and networks rose, alongside expanded supply of flip-chip ball grid arrays (FC-BGA) and advanced driver-assistance systems (ADAS) to major global tech clients.
Expectations for long-term supply agreements (LTA) are also supporting the stock price. Samsung Electro-Mechanics previously announced that it signed MLCC LTAs with over ten clients, including top-tier hyperscalers and major semiconductor companies. The demand for high-performance MLCCs has surged due to the expansion of AI infrastructure, leading to increased long-term supply requests from key customers.
The company anticipates continued growth in the second half of the year. During the second-quarter earnings conference call, it stated, "In the third quarter, we expect significant improvement in performance compared to the previous quarter due to the expansion of high-value products and LTAs, as well as an increase in average selling prices (ASP). We forecast achieving record-high results."
Park Jun-seo, a researcher at Mirae Asset Securities, noted, "The queue for Samsung Electro-Mechanics products has grown longer. Given the structural challenges for new competitors to enter the market, its position is unlikely to be shaken in the near term."
* This article has been translated by AI.
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