Samsung profit soars 19-fold but shares slump 6.9% on oversupply worries
Samsung Electronics said its profit jumped roughly 19-fold from a year earlier, driven by strong demand for AI memory chips. Even so, its shares fell 6.9% as investors worried about a possible oversupply and whether the AI spending boom can be sustained.
Samsung Electronics reported that its profit rose roughly 19-fold from a year earlier. The company said the strong result was driven by demand for high-performance memory chips used in artificial-intelligence systems.
Despite the strong earnings, the company's shares fell 6.9% during the trading session. The selling was triggered by investor concern over a possible oversupply in the memory market and over whether the heavy spending on AI infrastructure can be sustained over the long term.
Memory chips sit at the heart of the global technology supply chain, and swings in their prices can ripple across the sector. Analysts are watching the strength of demand and the direction of prices closely. The company's guidance for the coming quarter will offer clues about how durable AI-driven demand really is.
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