Samsung Electronics saw more than $100 billion (€87.5bn) wiped from its market capitalization on Tuesday, even as the South Korean tech giant forecast a staggering 19-fold increase in quarterly operating profit.
The company expects operating profit of approximately 89.4 trillion won (€51bn) for the April-June quarter, a dramatic leap from the 4.7 trillion won (€2.7bn) recorded in the same period last year.
This marks the third consecutive record quarter for the semiconductor and consumer electronics leader, driven largely by surging demand for AI-related components.
The sell-off represents a stark rejection of the financial results by investors, who appear to be pricing in significant execution risks and valuation concerns despite the headline growth.
The sharp decline in Samsung’s share price contributed to broader weakness across Asian equity markets, which drifted lower on Tuesday as buying interest failed to materialize.
The disconnect between the company’s robust earnings outlook and the market’s negative reaction underscores a growing skepticism among traders regarding the sustainability of the AI-driven profit boom.