Samsung Electronics shares fell more than 6% in Seoul on Thursday, wiping out early gains even after the company reported a record quarterly operating profit of 107.4 trillion won ($80 billion), up 783.1% from a year earlier. Revenue more than doubled to 195.3 trillion won, exceeding the broader consensus of 105.7 trillion won for operating profit, but the market focused on softer details beneath the headline numbers.
The semiconductor-led Device Solutions division generated 106.5 trillion won in operating profit, below some investor expectations of around 110 trillion won. Samsung's Device eXperience division, covering smartphones and consumer electronics, posted an 800 billion won operating loss as higher costs squeezed profitability. Kiwoom Securities analyst Han Ji-young said investors needed clarity on long-term chip contracts, pricing and future sales volumes.
Samsung declared a 30 trillion won third-quarter dividend, or 4,601 won per common and preferred share, but much of the payout was already anticipated. The company expects 2026 shareholder returns of 90 trillion to 110 trillion won, with detailed buyback and cancellation decisions not coming until a board meeting in late January 2027. Shinhan Investment & Securities analyst Kang Jin-hyeok noted dividends have less share-price impact than cancellations.
By contrast, SK Hynix shares jumped nearly 11% on Wednesday after record earnings and a $45 billion capital-return program. The Kospi Composite Index pulled back to 5,861 points Thursday, down from a weekly high of 6,095 points, and remains 37% below its highest level this year.
Pressure also came from Alphabet's results. Google reported revenue of $111.2 billion, with advertising revenue of $82 billion, slightly below expectations, raising concerns about heavy AI infrastructure spending. Analysts including Ken Griffin and Ray Dalio have warned about AI bubble risks, while Elon Musk said many neocloud companies could face difficulties; CoreWeave bond yields reportedly soared to 15%.
Morgan Stanley analyst Shawn Kim wrote that 'the easy money is past' for AI memory names, arguing strong future profits may already be reflected in stock prices. From a technical perspective, the Kospi remains below its 50-day moving average, with the Supertrend still red; strategists see possible downside toward 5,500 points or a recovery toward the 6,400-point moving average.
Although the selloff is centered in equities, the combination of AI-spending jitters and profit-taking may dampen risk appetite across speculative technology assets, including cryptocurrencies.
