Samsung Electronics forecast a nearly 19-fold jump in quarterly operating profit on the back of surging demand for AI memory chips, yet its shares dropped as much as 7% to 8%, underscoring how difficult it has become for even record results to satisfy Wall Street.
Q2 Guidance · Samsung Electronics
Record profit, falling stock: even a 19-fold surge isn't enough for Wall Street
Samsung guided to a ~1,800% jump in quarterly operating profit on booming AI memory demand — yet shares dropped as much as 7-8%, as investors now demand near-flawless execution.
~1,800%
Operating profit rise vs a year earlier — a third straight record
₩89.4T
Forecast Q2 operating profit (~$58.4bn / £43.6bn)
−7-8%
Share drop despite the blowout guidance
Profit, year on year
A near 19× leap in operating profit
Driver: surging demand for AI memory, especially high-bandwidth memory (HBM). Revenue is expected to more than double to ~₩171T.
The bull case
Durable AI-era profits accrue to the "picks and shovels" hardware layer — the chip and memory suppliers. Memory operating margins have expanded beyond 50% for some producers.
The bear case
Expectations have run so high that record earnings no longer lift shares. Investors are divided on whether elevated AI margins are durable — or the peak of a cycle.
What to watch across the sector
Good results are no longer enough — near-flawless execution is now the price of entry.
SK Hynix and Micron slid in sympathy with Samsung's decline
Memory makers surged past $1T in combined value before pulling back
TSMC's upcoming results seen as the bellwether for AI hardware demand
SK Hynix preparing a U.S. listing with a reported ~$28bn capital-raising plan
Figures are preliminary forecasts, not final audited results; segment breakdowns and pricing were not disclosed at this stage.
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