Inside Samsung's Record $59 Billion Quarter: Why the Stock is Still 26% Below Its Peak

Samsung posts record $59B operating profit, but shares fall 25.77% from June high as investors take profits, rotate to SK Hynix US listing, and face brewing labor strikes.

Samsung Electronics is navigating a rare clash of extremes. The company just posted its most profitable quarter in history, yet its shares are trading nearly a quarter below the 52-week high reached in June. Behind the disconnect lies a cocktail of profit-taking, capital rotation toward a domestic rival’s US listing, and brewing labor unrest that threatens to escalate as soon as next week.

Operating profit for the second quarter hit 89.4 trillion won (approximately $59 billion), far exceeding analyst expectations. Revenue of 171 trillion won fell slightly short of forecasts, but the jump in memory-chip prices — driven by persistent supply-demand imbalances — propelled Samsung to a result that rivals the quarterly records of Apple and Nvidia. The company commands 38% of the global DRAM market and 29% of the NAND flash segment, and it has been leading the recent upswing in memory pricing.

Analysts see the good times extending for years. Kim Sun-woo of Meritz Securities projects operating profit will reach $235 billion in 2026 and $385 billion in 2027, arguing that production capacity will remain insufficient to meet demand until at least the fourth quarter of 2027. Choi Bo-young of Kyobo Securities goes further, forecasting a structural supply shortfall through 2028 as “agentic AI” systems fuel broad demand for memory chips. Both analysts dismiss fears of a bursting AI bubble, with Kim likening such skepticism to carriage-drivers fearing the first automobile.

Yet the stock closed Thursday at 278,000 won, down more than 10% on the week and 25.77% below its 52-week high of 374,500 won set on June 19. Zavier Wong of eToro attributes the slide to classic profit-taking: the market had already priced in the record quarter, so the print merely confirmed expectations and triggered a wave of selling. That narrative is reinforced by the listing of SK Hynix American depositary shares on the Nasdaq this week, which has drawn capital away from the broader Asian tech sector as investors rotate into the new paper.

Adding to the pressure is internal tension at Samsung itself. Management recently removed the cap on executive bonuses, directing roughly 10% of operating profit to special payouts in response to union protests. But disagreements over how to distribute those funds have sparked renewed unrest, with labor unions planning further actions on July 16. The uncertainty casts a shadow over what should otherwise be a celebratory earnings period.

Technically, the stock has entered a weak patch. The 14-day relative strength index stands at 42, approaching oversold territory, while the price sits nearly 8% below its 50-day moving average of 302,130 won. The annualized 30-day volatility is close to 100%, underscoring how sharply sentiment has swung between euphoria over record profits and the reality of a 26% drawdown. Still, the longer-term picture remains formidable: the shares are up 116% year-to-date and 365% over the past 12 months.

All eyes now turn to July 30, when Samsung will publish its full second-quarter report including detailed divisional results and capital expenditure plans. For a stock that has already given back more than a quarter of its value from the June peak, that release will determine whether the bull case — built on a multiyear memory supercycle — can reassert itself, or whether the rotation and unrest have further room to run.