Samsung Posts Record Earnings, But Stock Falls... Semiconductor Market Outlook

[Anchor]

Despite posting record-high earnings, Samsung Electronics saw its stock price drop by more than 2%. While various factors are cited, moves by the U.S. government and interest rates are creating a burdensome atmosphere for South Korean semiconductor companies in the mid-to-long term.

Reporting by Kim Beom-joo.

[Reporter]

Today (Oct. 8), Samsung Electronics closed the regular trading session down 2.42% from the previous day at 262,000 won.

SK Hynix also fell by 2.44%, largely influenced by simultaneous selling by foreign and institutional investors.

Forecasts remain unchanged that the earnings of both companies will maintain high levels for at least the next three years or more.

[Sanjay Mehrotra / Micron CEO (Oct. 1): "We expect memory semiconductor demand to be even stronger in 2027 and 2028. There are no signs of customer demand slowing down."]

Nevertheless, today's drop in stock prices is interpreted primarily as short-term profit-taking. Investors appear to believe that the semiconductor boom is already largely priced in, leading to a rotation into sectors with higher potential for near-term gains.

In the mid-to-long term, U.S. interest rates also play a significant role.

As U.S. Treasury yields surge day by day, increasing borrowing costs for corporations, growing concerns remain over when this might negatively impact the artificial intelligence investment boom.

Apprehensions also persist that as the midterm elections approach, the U.S. government will ramp up pressure—leveraging tariffs—for companies that have achieved record earnings to invest more heavily in the United States.

[Donald Trump / U.S. President (Sept. 26): "We need tariffs. Even if you win big in elections, ultimately you can only attract foreign investment if you have tariffs."]

Coupled with the pursuit by Chinese companies steadily chasing Korean firms starting from the lower-performance DRAM sector, figuring out how to fend off the bills and threats flying right behind record-high earnings has become a homework assignment for both local corporations and the government.

(Photo: Yonhap News)
(Reported by Choi Ho-jun | Video by Jung Yong-hwa | Graphics by Kim Ye-ji)
※ Please note: This article was translated by AI and may contain errors.