Samsung Electronics stock: ₩64,900 (-1.96%), marking a 7-day losing streak.
Intraday low: ₩64,200 (new 52-week low).
Korea Investment & Securities cut its target price by 20%.
Q3 forecasts:
Revenue: ₩79.3 trillion (-5% vs. consensus)
Operating profit: ₩10.3 trillion (-23% vs. consensus)
NVIDIA stock gained 1.53%, Philadelphia Semiconductor Index rose 1%, yet Samsung failed to rebound.
Opinion
Samsung Electronics is facing more than just a temporary earnings decline—it is grappling with structural challenges. The core issue is the imbalance in its business portfolio. With a heavy reliance on legacy memory, the decline in DRAM prices poses a serious risk. More concerning is the slow transition to high-value products like HBM.
The fact that Samsung's stock continues to decline even as global semiconductor stocks rise reflects fundamental doubts about its competitiveness in the market.
Core Sell Point
Samsung’s high dependency on legacy memory and delayed shift to HBM make earnings declines inevitable. Without structural improvements, a meaningful stock recovery remains unlikely.
Samsung Electronics' stock extended its losing streak for the seventh consecutive session, hitting a new year-to-date low during early trading on September 11.
The stock closed at ₩64,900, down 1.96%, marking its seventh straight day of losses since September 3. During the session, it dropped as low as ₩64,200, setting a new 52-week low.
Despite NVIDIA’s stock rising 1.53% and the Philadelphia Semiconductor Index gaining 1% on September 10 (U.S. time), investor sentiment toward Samsung Electronics remained weak, failing to stage a rebound.
Q3 Earnings Expectations Fall Below Market Consensus
On the same day, Korea Investment & Securities slashed Samsung Electronics' target price by 20%, citing expectations that Q3 results will fall short of market consensus.
Chae Min-sook, an analyst at Korea Investment & Securities, forecasted:
Samsung has been cutting production since 2023, with a strong focus on HBM (High Bandwidth Memory) production capacity.
Due to these factors, supply growth will remain constrained even in 2025.
If average selling prices (ASPs) begin to decline, the supply-demand balance will likely persist longer than in previous downturns, leading to a more gradual ASP decline.
Daishin Securities analyst Park Kang-ho pointed out that in the first half of the year, Samsung Electronics and SK Hynix benefited from:
Rising DRAM and NAND prices, which improved profitability.
Expansion of HBM supply, a high-margin product.
However, in Q3, IT demand remains sluggish, leading to concerns that the pace of DRAM price increases is slowing, which is weighing on investor sentiment.
HBM Supply Expansion Becomes a Critical Factor
With growing concerns over Q3 earnings, analysts stress that Samsung Electronics must secure growth momentum through HBM expansion.
An industry insider stated:
“As DRAM prices begin to decline, expectations for Samsung, which has a higher exposure to legacy memory, have weakened.”
“Expanding HBM supply will be a key turning point for a potential recovery in the second half.”
[Compliance Note]
All posts by Sellsmart are for informational purposes only. Final investment decisions should be made with careful judgment and at the investor’s own risk.
The content of this post may be inaccurate, and any profits or losses resulting from trades are solely the responsibility of the investor.
Core16 may hold positions in the stocks mentioned in this post and may buy or sell them at any time.
