Shares of Samsung Electronics crashed nearly 10% on Tuesday, pulling down South Korea's benchmark index Kospi more than 8%, even after the world's largest memory chipmaker forecast a 19-fold surge in its second quarter operating profit.
The sharp drop in Samsung’s share price may have been driven by concerns about the durability of the AI-driven chip boom. The company estimated its operating profit for the period between April and June at 89.4 trillion won ($58.44 billion), beating an LSEG SmartEstimate of 87.3 trillion won. The tech giant reported a profit of 4.7 trillion won a year earlier. Revenue would likely jump 129% year-on-year (YoY) to 171 trillion won, it said.
