Samsung Electronics predicts a 19-fold jump in second-quarter operating profit to 89.4 trillion ($58.4 billion) today, July 7. The rating beat analyst predictions and placed Samsung’s third-highest rating.
However, Shares still fell more than 6% in early trading, extending the rally’s return five times over the past year.
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Samsung tips won 87.3 trillion won LSEG SmartEstimate. He also won 84.4 trillion won FnGuide contract, according to Reuters.
Samsung expects revenue to rise 129% year-on-year to 171 trillion won. However, this figure did not match the experts’ estimate of 173.3 trillion won, according to in Korea JoongAng Daily.
Citi Research found DRAM prices rose 44% quarter-over-quarter, while NAND flash prices rose 53% over the same period. Analysts linked the increase in AI investment to push it further High-bandwidth memory to be common chips in phones, PCs and servers.
HBM’s production capacity has increased to provide you with memory chips, resulting in higher prices. Consumers are also looking for longer-term contracts, which analysts say could push prices up into next year.
Also, Samsung he agreed to the wage and labor agreement in May. The deal aligns semiconductor employee bonuses to profitability, and Samsung set aside cash for bonuses this quarter.
Analysts estimate that operating profit would have been just over $100 trillion without those bonuses.
Why Are Shares Falling Yet?
Samsung stock has rallied five times over the past year, but Tuesday’s decline appears to be taking profits later, with some selling their earnings rather than chasing the stock.
Analysts expect heavy losses at Samsung’s foundry and logic chip units, as bonus payments spread throughout the semiconductor sector.
The pullback is also in line with the broader trend in chip stocks, where sentiment was broadly divided by company. Memory glut fear has hit some retailers in recent weeks, though Micron’s AI-powered operation he pushed others up to the same height. That division has recently fed warnings about the AI bubbleand investors are worried about how far the rally can go.
Samsung will release the breakdown of all divisions on July 30. It also promised that 2,100 trillion will be won in domestic income through 2040, although it will change the amount to match the market.
Some experts argue that memory loss appears to be permanent, because new products take years to build and reduce the size of products. The decline in AI data center investment remains an obvious risk to that outlook.
A note Samsung Forecast a 19-Fold Profit Jump Today: So Why Is the Stock Down 6%? appeared for the first time BeInCrypto.
