Analyst: Samsung's better-than-expected earnings report has already been priced in, investors are concerned about AI sustainability

BlockBeats News, July 7th. Today, Samsung Electronics released an earnings preview that exceeded expectations: the company's operating profit is expected to increase by over 1800% year-on-year, surpassing the cumulative total of the past three years in a single quarter. Additionally, the company's revenue also grew by 129% year-on-year, reaching 171 trillion Korean won. However, investors do not seem convinced as Samsung Electronics experienced a continuous decline in the South Korean stock market after opening, with a maximum drop of 8%.

Analysts attribute Samsung's weak stock price to partly overblown market expectations: after accounting for employee bonus provisions, the record-high profit driven by soaring memory chip prices may exceed 90 trillion Korean won. Moreover, the market is also concerned about a potential slowdown in AI data center construction. Albert Yong, Managing Partner at Petra Capital Management, stated: "Samsung's robust performance had already been widely anticipated by the market and was largely factored into the pre-earnings stock price surge. Investors remain concerned about the sustainability of the AI boom and the risk of a slowdown in U.S. major tech firms' AI infrastructure spending."