Samsung Electronics shares rose nearly 4% in early trading, reflecting a strong performance among domestic semiconductor stocks. This surge is attributed to optimism surrounding rising memory prices and expectations for third-quarter earnings.
As of 9:08 a.m. on the Korea Exchange, Samsung Electronics was trading at 271,000 won, up 10,000 won (3.83%) from the previous trading day. Samsung Electronics' preferred shares also increased by 4.54% to 205,000 won.
SK Hynix shares rose 1.00% to 1,875,500 won, while SK Square, which holds shares in SK Hynix, saw a 2.87% increase to 1,110,000 won.
On September 18, despite U.S. 10-year Treasury yields surpassing 5%, semiconductor stocks performed well, with the Nasdaq rising 0.40% and the S&P 500 increasing by 0.17%. This semiconductor rally has bolstered investor sentiment across the technology sector.
Recent positive trends in the memory market have also contributed to stock price gains. In the second quarter of this year, Samsung Electronics reported record quarterly earnings of 171.5 trillion won in revenue and 89.5 trillion won in operating profit. The semiconductor division, known as the DS division, achieved its highest-ever revenue and operating profit.
Analysts predict that third-quarter earnings may exceed these figures. Mirae Asset Securities forecasts Samsung Electronics' operating profit for the third quarter to reach 106 trillion won, anticipating a 16.5% increase in the average selling price (ASP) of DRAM compared to the previous quarter.
Shareholder returns are also on the rise. Last month, Samsung Electronics announced a 15 trillion won share buyback plan, set to continue until November 21. SK Hynix has also revealed plans for a 40 trillion won share buyback and cancellation, aiming to increase shareholder returns to over 50% of cumulative free cash flow (FCF) from 2025 to 2027.
* This article has been translated by AI.
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