It's no secret that Samsung Electronics has been having a hard time turning the kind of profits that it has been used to. That's largely been due to the global downturn in the semiconductor industry which hit Samsung's profitability hard.
However, amid signs of a recovery in the memory market and the rising demand for advanced chips from AI companies, investors are pouring money into the company's stock, sending its market cap soaring to above $370 billion after three years. Samsung's market cap was last at this level back in April 2021.
Investors are loving Samsung Electronics' stock
The price of Samsung's Electronics' stock has gradually risen, with the most recent 4% rise taking it beyond the 85,000 won or $63 mark for the first time in three years. The share price was last at 85,600 won on April 7, 2021.
Foreign investors have particularly been pouring money into Samsung Electronics stock, buying a massive 1 trillion won or nearly $740 million worth of stock yesterday. Between March 19 to April 2 this year, foreign investors have invested 5.75 trillion won or $4.2 billion in the company's shares, highlighting their growing confidence in the company's ability to take full advantage of present and future business opportunities.
There's also anticipation of better results as Samsung is due to provide its preliminary earnings guidance for the first quarter this Friday. Analaysts expect that Samsung's sales for Q1 2024 will be up 14% compared to the same period last year, with a massive 711% increase in operating profit to 5.19 trillion won or $3.8 billion.
