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Samsung Surpasses 100 Trillion Won in Quarterly Profit, Investors Still Unconvinced
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In Short: Samsung Electronics announced Thursday that its third-quarter operating profit exceeded 100 trillion won ($74.65 billion), a milestone no other tech company has ever achieved.
Samsung Electronics announced Thursday that its third-quarter operating profit exceeded 100 trillion won ($74.65 billion), a milestone no other tech company has ever achieved. However, the record-breaking profit did not impress investors, who have seen the company's shares fall by about 30 percent since June 19.
Foreign and institutional investors have been selling Samsung shares, with foreign investors net selling for eight consecutive sessions since September. In contrast, retail investors have been buying shares, but the overall sentiment remains negative.
Samsung's estimated third-quarter operating profit of 107.4 trillion won was announced in Seoul, but the company's shares closed at 262,000 won, down 2.42 percent from the previous session.
Analysts suggest that larger shareholder returns could provide a catalyst for Samsung shares, given the company's surging profits and increased financial flexibility. However, there is division among analysts regarding the sustainability of the memory-chip boom and whether Samsung should increase shareholder returns.
Samsung plans to distribute 30 trillion won in dividends and allocate 15 trillion won for employee compensation through share buybacks. Despite these measures, some analysts remain skeptical about the company's ability to maintain its current growth trajectory.
One analyst noted, 'Memory has now become the most critical and strategic layer in the entire AI stack,' indicating the importance of memory chips in the tech industry. Another analyst added, 'This memory upcycle is bigger than all the previous cycles and will last longer as it will take time for the supply to catch up with demand.'
However, another analyst warned, 'The audience will prove much more difficult to please than in the past,' suggesting that maintaining investor satisfaction will be challenging. Another analyst stated, 'I don't think we're about to see a collapse, but the insane returns investors have enjoyed so far are likely a thing of the past.'
What this adds
Samsung's unprecedented profit has not translated into investor confidence, highlighting the complexity of market expectations in the tech sector.
What's still developing
- A Samsung Electronics logo appears in this illustration taken August 2025.