Why Samsung’s Record Profit Failed to Impress Investors

Summary

Samsung's record profit failed to lift shares as investors rotated out of tech, but analyst Ray Wang argues the sell-off is a buying opportunity because AI-driven memory demand remains exceptionally strong with long backlogs. He highlights that high bandwidth memory and DRAM are essential for AI, and the current dip provides an attractive entry point.

• Samsung posted a 19-fold quarterly profit surge but shares fell, disappointing investors who had priced in stellar AI chip demand.
• Analyst Ray Wang sees the sell-off as a chance to buy, citing 18-24 month backlogs for high bandwidth memory and DRAM.
• AI cannot be built without memory; hyperscaler backlogs ($728B in US) and sovereign AI demand provide a strong floor.
• Samsung's 2026 profit alone exceeds its cumulative semiconductor profit over the past 40 years, signaling a structural demand cycle.
• A rotation out of tech into other sectors is underway, which could broaden economic growth but creates near-term pressure on tech stocks.
• The overall message: memory demand is real, not a peak, and the dip in Samsung shares is an opportunity to re-enter.