Samsung Electronics announced its preliminary earnings for the second quarter of this year, reporting a record operating profit, but its stock price fell nearly 5% during trading.
On July 7, Samsung disclosed that it achieved sales of 171 trillion won and an operating profit of 89.4 trillion won for the second quarter. The operating profit exceeded market expectations and was hailed as the largest quarterly operating profit ever, surpassing major global tech firms like Nvidia, thanks to increased demand for AI semiconductors.
However, the market's reaction was contrary to expectations. Despite the 'record earnings' news, Samsung's stock price dropped more than 5% immediately after the earnings announcement.
Analysts attribute the decline primarily to 'profit-taking' following the anticipated earnings. They noted that improvements in Samsung's performance had been expected for several months, and the stock had already risen significantly, reflecting much of that optimism. Consequently, the earnings announcement triggered a wave of short-term profit-taking.
This phenomenon is often described as 'buy the rumor, sell the news,' where expectations drive the stock price up before the announcement, only for selling to occur afterward.
Another factor contributing to the decline is that market expectations had become excessively high.
While the earnings are indeed at an all-time high, investors are more focused on how long the boom in AI memory semiconductors will last. Key variables that could influence future stock prices include the expansion of HBM (high-bandwidth memory) supply in the second half of the year, the sustainability of AI investments, and the pace of recovery in the foundry business, which remains a concern for profitability.
Concerns about the AI investment cycle have also had some impact.
Recently, the global semiconductor sector has experienced increased volatility amid debates over potential overheating in AI investments. Analysts suggest that the possibility of a slowdown in AI infrastructure investments or a moderation in spending by major U.S. tech firms has contributed to heightened volatility across semiconductor stocks.
However, many analysts believe it is premature to conclude that this adjustment marks a long-term trend change.
The rise in prices and demand for memory used in AI servers continues, and Samsung remains a key beneficiary of the AI semiconductor boom. The upcoming release of confirmed earnings and the outlook presented during the earnings conference call will likely play a significant role in determining the stock's next direction.
Market participants interpret this adjustment not merely as a reaction to poor earnings but rather as a reflection of investors applying higher standards for future growth, given that even record earnings had already been largely factored into the stock price.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.