Technology stocks drag Nasdaq lower; Dow, small caps edge up
U.S. tech indexes fell sharply on OpenAI revenue concerns; Dow and small caps eked out gains.
Samsung forecast 107.4 trillion won ($80 billion) in Q3 operating profit, a record for any tech company. Analysts' price targets range widely.
Samsung Electronics has projected 107.4 trillion won (about $80 billion) in operating profit for the third quarter. This would be the first time a technology company has exceeded 100 trillion won in a single quarter.
Year-on-year, operating profit surged 782.5%. Yet Goldman Sachs holds a 490,000 won price target on the stock, roughly 87% above Thursday's closing price.
Memory chipsāused for data storage in smartphones and AI serversādid most of the work. AI data centers are buying them at a rate that exceeds manufacturing capacity, pushing prices higher.
According to The Korea Times, analysts estimate memory contributed about 110 trillion won in revenue. Samsung's high-bandwidth memory (HBM) shipments, stacked chips that supply AI processors, grew nearly 50% compared with the second quarter.
"Here's another remarkable number from the AI boomā¦The reason? Soaring demand for MEMORY chips used in AI infrastructure. AI infrastructure spending is creating enormous profits for chip suppliers while raising costs for other industries," macro strategist Jerry Robinson noted.
But the mobile division bore the cost, according to analysts cited by Reuters, losing over $1 billion as chip prices climbed. Samsung is reportedly scheduled to detail results by business on October 29.
Goldman Sachs analyst Heather Oh flagged potential volatility on October 8, according to Hankyung. That day brought a combination of chip fund rebalancing, options expirations, and the conclusion of Samsung's 15 trillion won share buyback.
Samsung Electronics investors are heading into a crowded Thursday. Goldman Sachs analyst Heather Oh warned clients that October 8 combines the company's preliminary third-quarter report, rebalancing across seven semiconductor ETFs, options expiry, and the end of a share buyback,ā¦
ā Himanshi šø (@HimanshiTech) October 7, 2026
Foreign investors offloaded a net 348.5 billion won of Samsung shares, and institutions dumped 647.7 billion won, per The Korea Times. BeInCrypto's Q3 earnings preview also pointed to a comparable decline following July's record quarter.
Nevertheless, most price targets remain well above the current level. Goldman Sachs reaffirmed a buy rating and its 490,000 won target on September 18. Korea Investment & Securities has the highest target at 650,000 won.
BNK Investment & Securities stands apart, with a 270,000 won target and a hold rating. Its reason: aggressive capacity expansion throughout the industry.
Growth is decelerating. Analysts project fourth-quarter profit will increase 8.2% quarter-over-quarter, compared with 20% this quarter. Samsung and Micron anticipate the chip shortage persisting into 2028.
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U.S. tech indexes fell sharply on OpenAI revenue concerns; Dow and small caps eked out gains.
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