Samsung's Record Profit, 7% Selloff: Is The Stock Cheap? - SAMSUNG ELECT LTD by Samsung Electronics Co.,

Samsung’s first-quarter results showed record memory-driven profitability, yet the stock fell about 7%, prompting questions about valuation. Revenue reached 133.87 trillion won (about $90 billion) and operating profit climbed to 57.23 trillion won (about $38 billion), both records, up 69% and 756% year over year. Samsung’s Device Solutions posted 81.7 trillion won in sales (about $55 billion) and 53.7 trillion won in operating profit (about $36 billion), roughly 94% of total operating profit, while the consumer arm reported 52.7 trillion won in sales (about $35 billion) and only 3.0 trillion won (about $2 billion) in profit. The company said it began shipping mass-produced HBM4 and SOCAMM2 chips for AI accelerators. For the second quarter, Samsung guided sales near 171 trillion won (about $112 billion) and operating profit around 89.4 trillion won (about $59 billion). Despite beating operating profit estimates of roughly 85 trillion won, revenue slightly missed consensus just under 172 trillion, contributing to the selloff. Analysts cited demand and an 18-to-24-month backlog, while Samsung indicated memory prices should stay on an upward trend as AI infrastructure expands. The article notes a forward P/E near 5 versus a long-run average around 14, with shares closing at 358,500 won on June 25 after running about 415% over the year.