logo

HomeArticlesServicePriceAbout

logo
article
박재훈투영인 프로필 사진박재훈투영인
"Flagship Retail Stock" Samsung Electronics Sees Market Cap Share Plunge (Oct 6, 2024)
created At: 3/15/2025
Sell
Sell
This analysis includes a sell recommendation. Please carefully review all mentioned risk before proceeding.
91
0
0
Fact
Samsung Electronics' market cap share (September): 18.61% for common stock, 20.72% including preferred shares. Lowest since October 2022. Current stock price: ₩60,600, market cap: ₩361.7 trillion. Hit ₩59,900 intraday (52-week low) on October 2. Macquarie cut target price from ₩125,000 → ₩64,000.
Opinion
The decline in Samsung Electronics' market cap share is more than just a stock price issue—it signals a weakening leadership position in both the Korean stock market and the global tech industry. The bigger concern is its diminishing competitiveness in AI semiconductors. Losing HBM dominance to SK Hynix and delays in securing NVIDIA as a key customer raise serious questions about Samsung’s future growth trajectory. The ongoing oversupply concerns in memory chips only add to its structural challenges.
Core Sell Point
Samsung’s declining market cap share reflects structural challenges in the AI era and oversupply issues in the memory semiconductor market, making a short-term rebound unlikely.

As Samsung Electronics' stock price continues its downward trend, its market capitalization share in the Korean stock market fell to a two-year low last month.

According to the Korea Financial Investment Association on October 6, Samsung Electronics' common stock accounted for 18.61% of the total market capitalization on the KOSPI exchange in September. When preferred shares are included, its market cap share stood at 20.72%, marking the lowest level since October 2022.

At that time, Samsung’s market cap share was 18.05% for common stock and 20.32% including preferred shares.

The market capitalization share is calculated as the monthly average of the total market value of Samsung Electronics' stock relative to the total market value of all KOSPI-listed stocks, based on daily closing prices.

Why Is Samsung's Market Cap Share Falling?

The decline is attributed to Samsung's sluggish stock performance, driven by:

  1. The worst semiconductor downturn in history last year, followed by a slower-than-expected recovery compared to competitors.

  2. Losing market leadership in high-bandwidth memory (HBM) to SK Hynix, despite HBM’s rapid growth in the AI sector.

  3. Delayed supply agreements with NVIDIA, a key AI chip customer.

Due to these concerns, both domestic and global brokerage firms have been lowering their price targets for Samsung Electronics since September.

Brokerage Firms Slash Samsung's Price Target

On September 25, Macquarie Securities released a report stating that:

  • Samsung's memory division is entering a down cycle, leading to deteriorating profitability.

  • Oversupply in DRAM and NAND memory will put downward pressure on ASPs (average selling prices), negatively impacting demand and earnings.

  • Target price cut from ₩125,000 → ₩64,000, with investment rating downgraded to "Neutral."

Similarly, most domestic securities firms have also lowered their price targets below ₩100,000.

Samsung's Continued Weak Stock Performance in October

Samsung Electronics' stock slump has persisted into October:

  • On October 4, the stock closed at ₩60,600, down 1.14% from the previous session.

  • Market capitalization stood at ₩361.77 trillion.

  • On October 2, the stock hit an intraday low of ₩59,900, marking a new 52-week low.

[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.

91
0
0
Comments
0
Please leave a comment first