Samsung Electronics posts 1,810% jump in Q2 operating profit, yet shares slide 8% on lingering AI chip demand worries

Samsung Electronics released preliminary second-quarter results in South Korea on Tuesday, projecting a 19-fold year-on-year surge in operating profit that outstripped expectations. The company guided for Q2 operating profit of 89.4 trillion won, up 1,810.2% from a year earlier and above the market consensus of 87.3 trillion won. The result was described as exceeding the combined profits recorded over the past three years. Samsung's shares still fell more than 8% in early trade, as the update did little to ease investor concerns about how long the AI-driven chip upcycle can last. Peer SK Hynix dropped 7.3%, and the benchmark KOSPI slid 6%. Analysts said the stock reaction reflected expectations that had run ahead of the fundamentals. Some noted that, after factoring in provisions for employee bonuses, operating profit buoyed by record-high memory chip prices could have topped 90 trillion won. Worries also persist that the pace of AI data-center buildouts could cool. Albert Yong, Managing Partner at Petra Capital Management, said the strong results were broadly anticipated and largely priced in ahead of the release, while investors remain focused on whether the AI boom is sustainable and on the risk that major U.S. tech firms may rein in spending on AI infrastructure. (Jin10) (Source: ODAILY)