Samsung Electronics approves W30tr dividend on record Q3 profit

Asian stocks fell Thursday as Alphabet (GOOGL) and Samsung (005930) reported disappointing results, dragging down tech shares. Alphabet shares dropped 10% after reporting weak earnings and heavy AI spending. Samsung shares fell 6% despite record earnings, missing semiconductor profit expectations. Investors await earnings from Amazon and Intel for AI investment clues. U.S. stock futures also declined, with Nasdaq 100 Futures down 1.5%.

Samsung Electronics reported a record Q3 net profit of 75.13 trillion won, up 514.6% YoY, driven by strong memory chip sales amid AI demand. Operating profit rose 783.1% to 107.44 trillion won, with semiconductors contributing 99.1% of operating profit. The company expects continued growth in memory chip demand and has secured long-term supply agreements.

Samsung Electronics reported record Q3 revenue of 195.3 trillion won and operating profit of 107.4 trillion won, driven by its semiconductor business. Despite this, shares fell 5% as the company delayed shareholder return plans until January 2024. The Visual Display and Home Appliances divisions saw declines due to sports events and rising costs, respectively.

Samsung Electronics' subsidiary Harman reported Q3 revenue of 4.3 trillion won ($3.2B) and operating profit of 600 billion won ($450.1M), driven by telematics supply to Volkswagen and strong audio sales. Harman is expanding in automotive electronics and premium audio markets, according to Samsung.

Samsung Electronics anticipates a memory supply shortage through 2028 due to sustained AI infrastructure investment and production capacity constraints. HBM supply is already sold out for next year, with HBM4 revenue tripling in Q3. The company expects tight conditions to persist, potentially benefiting earnings visibility.

Samsung Electronics reported record operating profit of 107.4 trillion won ($80.5 billion) and revenue of 195.3 trillion won ($146 billion) for Q3, driven by AI-related chip demand. The company expects this trend to continue through 2027 and plans to focus on AI server components. Samsung and SK Hynix are investing heavily in semiconductor and data center infrastructure, but analysts caution about potential risks.