Samsung Electronics¡¯ quarterly profit surged 19-fold but failed to impress investors used to eye-catching growth from the suppliers of artificial intelligence?chips.
Samsung¡¯s shares slid 8.5% in Seoul on Tuesday, with investors having largely priced in chipmakers¡¯ hefty profit margins due to a historic buildout of AI infrastructure worldwide. Korea¡¯s largest company posted preliminary operating income of 89.4 trillion won ($58 billion) in the three months through June, beating projections by about 6%. Revenue more than doubled to 171 trillion won.
Earnings by the world¡¯s largest maker of computer memory are in the spotlight as investors seek to justify sky-high investments and valuations around AI. Global semiconductor shares jumped to record levels earlier this year, but have hit turbulence on fears about increased competition, possible overcapacity and whether plans for hundreds of billions of dollars in investment will pay off.
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