Samsung Electronics Earns 107 Trillion Won, but Shares Stall... "'Semiconductor Peak'” Concerns Persist

Samsung Electronics Posts 107 Trillion Won in Third-Quarter Operating Profit
Shares Edge Lower Despite Record Results
Concerns Over Profit-Taking and Slowing Chip Price Growth
Sharp Rise in U.S. Treasury Yields Also Weighs on Market

Employees monitor stock market and exchange rates at the dealing room of Hana Bank's headquarters in Jung-gu, Seoul, on October 8. The KOSPI opened higher but soon fell, fluctuating around the 6,800 level. 2026.10.8 Photo by Jo Yongjun

Samsung Electronics reported record third-quarter operating profit that exceeded market expectations, but its shares are weakening as investors take profits. The KOSPI also fell amid concerns over a possible slowdown in memory chip price growth and the burden of a sharp rise in U.S. Treasury yields.

Shares Weaken Despite Samsung Electronics' Record Results as Investors Take Profits and Chip Price Growth Slows

On October 8, the KOSPI opened at 6,808.68, up 0.07% from the previous trading day, before reversing course. As of 10:03 a.m., it was trading at 6,747.97, down 0.82%. The KOSDAQ opened at 898.19, down 0.03%, then reversed course to trade at 900.19, up 0.20%.

Samsung Electronics' third-quarter results were the focus of market attention that day. Before the market opened, the company announced that its consolidated operating profit for the third quarter of this year was provisionally estimated at 107.4 trillion won, up 782.5% from the same period a year earlier. This was about 1% above the market estimate of 106.7467 trillion won. Samsung Electronics is the first domestic company to post quarterly operating profit of more than 100 trillion won. Revenue totaled 195 trillion won, about 3% below the estimate of 200 trillion won.

Despite the strong results, Samsung Electronics shares were trading at 267,000 won as of 10:04 a.m. that day, down 0.56% from the previous trading day. Analysts attributed the decline despite the record results to some of the positive earnings expectations having already been priced into the shares. Samsung Electronics shares, which were at 120,000 won at the start of the year, have risen 125% so far this year, while investors, particularly foreign investors, have continued to take profits.

A recent pause in DRAM price growth has also weighed on the shares, amid expectations that earnings growth will slow going forward. Micron, a competitor that reported results earlier, also saw its shares weaken after saying its gross margin, currently at 87%, would fall to 86.3% in the next quarter.

Han Ji-young, a researcher at Kiwoom Securities, said, "Micron's share price gains were limited despite its strong results, and Samsung Electronics and SK hynix have also shown little momentum even as positive news for domestic semiconductor stocks has continued to emerge, including a September semiconductor export surprise." She added, "As market expectations for semiconductor stocks have risen, the focus has shifted away from this year's results and toward the sustainability of earnings from next year onward."

Most other large-cap stocks were also weak. Among the 10 companies with the largest market capitalizations, SK Square (-2.89%), Samsung Electro-Mechanics (-1.31%), Hyundai Motor (-3.12%), KB Financial Group (-1.48%), Samsung Biologics (-3.29%), and Samsung Life Insurance (-2.49%) were lower. By contrast, SK hynix (0.70%) and LG Energy Solution (5.50%) were strong.

The KOSDAQ was rising, led by semiconductor equipment and secondary battery stocks. Jusung Engineering surged 10.10% to 272,000 won, while Wonik IPS (6.18%), Leeno Industrial (4.11%), Simmtech (1.82%), and EO Technics (3.09%) were also higher. EcoPro (1.41%) and EcoPro BM (3.13%) also rose.

Sharp Rise in U.S. Treasury Yields Also Weighs on Markets

The surge in U.S. Treasury yields is also weighing on stock markets. On October 7, the 10-year U.S. Treasury yield climbed above 5.36% intraday, reaching its highest level since 2002. The 30-year yield also rose to around 5.73%, its highest level in 24 years. The rise was driven by inflation concerns stemming from the prolonged war, increased U.S. government spending, and a rise in bond issuance by big tech companies.

Amid the pressure from higher yields, the Dow Jones Industrial Average fell 0.66% overnight, while the S&P 500 and Nasdaq Composite each declined 0.22%. However, yields retreated from their intraday highs after strong demand was recorded at the U.S. Treasury's $39 billion auction of 10-year notes.

Seo Sang-young, an executive at Mirae Asset Securities, said, "Profit-taking emerged even in AI and technology stocks, which had continued to rise on earnings expectations despite high interest rates." However, he added, "Stronger-than-expected demand at the 10-year Treasury auction and a reversal in international oil prices, which began to fall, quickly narrowed the rise in long-term yields, and the indexes also pared their losses."

This content was produced with the assistance of AI translation services.