Samsung Electronics’ preliminary results are about to be released, which may set the tone for the trend of global chip stocks
Global chip stocks have fluctuated violently in recent weeks, with investors looking for new evidence of the rationality of AI trading. Samsung Electronics' earnings report to be released on Tuesday may be one of them. The world's largest memory chip maker is expected to post preliminary operating profit of 84.3 trillion won ($55.1 billion) in the quarter ended in June, according to average forecasts compiled by analysts compiled by the media. That would be 18 times higher than the same period a year earlier and well ahead of the company's full-year profit in 2025. Revenue is expected to surge 127% to a record 169 trillion won. While global semiconductor stocks just ended their best quarter on record, the rally hit a bumpy patch in June as investors worried about increased competition, potential overcapacity and whether huge AI investments would pay off, triggering sharp and intermittent pullbacks. This makes Samsung's performance very important to the market, and the high expectations of the outside world do not allow for any disappointment. Dave Mazza, CEO of Roundhill Financial, said that the financial report was released at a time when the market is questioning the supply and demand of memory chips. Meta's plan to sell computing power has raised concerns about demand. Negotiations with Chinese suppliers hint at possible cracks in supply tensions; "An earnings report close to market expectations would tilt the debate in Samsung's favor." Fibonacci Asset Management Global CEO Jung In Yun said the preliminary financial report will be a "key catalyst" for global chip stocks, reflecting indicators such as high-bandwidth memory chip demand and pricing. Samsung shares doubled last quarter and are up more than 155% so far this year. However, in the five trading days as of last Friday, Samsung's stock price fell nearly 9%, marking its worst week since the end of March, and global chip stocks also fluctuated violently. Samsung's detailed results are expected to be announced later in July. To be sure, investors have high earnings expectations for Samsung after a strong rally, leaving little room for error.