A Samsung earnings miss should spark a rally that marks the start of the next leg up for memory stocks including Micron, SK hynix and SanDisk. A quoted post sums up the setup: Samsung just posted the most profitable quarter ever by any company, yet trades at a forward P/E of 4. x.com  x.com 

Samsung's preliminary Q3 points to the most profitable GAAP quarter ever, yet the stock trades at about 3.5x 2027 EPS. Preliminary Q3 revenue is about $145 billion with operating profit near $80 billion. If revenue grows 8% and net income 12% quarter over quarter for 5+ quarters as expected, Q3 2027 net income could top $105-110 billion. Samsung could earn its whole market cap in net income from 2026 to 2030, and heavy buybacks could lift EPS growth to a 40-50% CAGR. Final numbers are still due. … Show more

Samsung Electronics faces downside risk because its parabolic run has made market expectations unrealistic, so one mistake could release gravity. Wall Street Engine's Q3 highlights showed revenue, operating profit and net profit below estimates despite triple-digit year-over-year growth. x.com 

SK hynix's earnings and buybacks could drive a tripling by 2027 before a re-rating, on Jonah Lupton's assumptions. Its Q3 report expects memory demand to outpace supply through 2030 as advanced processes and fab lead times constrain growth. It plans about KRW 100 trillion in FY2026 shareholder returns, including KRW 60 trillion or more in share acquisitions or cancellations; the buybacks would first reduce shares outstanding. x.com  x.com  x.com  x.com  x.com  x.com 

Korean equities have a central role in the AI trade because Samsung and SK hynix supply most of the memory it needs. Despite the shakeout, the KOSPI leads the major markets shown at roughly +36% this year. The bullish lean faces a flow warning: Korean semiconductor ETF 20-day flows fell from nearly +$4B in June to about -$703M by October 18 as the index approaches rising support. x.com  x.com  x.com  x.com  x.com 

Samsung Electronics' roughly KRW 30 trillion Q3 cash dividend is already priced in and short of the KRW 40 trillion-plus it should have returned, so it is likely to become a profit-taking event. Even this payout eats into mid- to long-term growth drivers, and without a stronger catalyst, selling is the likely outcome. Per @Xgngu12, further shareholder-return policies are not due until January. x.com  x.com 

Samsung Electronics preferred shares trade at a ridiculous discount to the common, and an activist is now pushing management to buy back and cancel them. The gap mainly reflects the preferreds' lack of voting rights and mutual funds and ETFs buying the common shares instead. x.com  x.com 

Samsung Electronics' history of compounding tangible equity suggests reinvested profits can add to the preferred shares' value alongside dividends. Tangible equity rose 65% in 2016-21 without the AI trade and over 250% in 2016-26. The preferred usually trades 25-30% below common despite the same economics. The case needs good 2027-28 earnings, dividends under the 50%-of-FCF return goal, and foundry and other projects not to become money pits; eight years of current profits is unlikely. x.com 

AI equity momentum is fading, and when great news fails to move a stock up, that is a very bearish sign. TeraWulf's 20-year, $19 billion Anthropic contract saw its shares fade from +17% to +5%, SK hynix trimmed fundraising for its US listing, and SpaceX's Nasdaq inclusion is historically a top signal. Fade rate hikes. x.com 

Korean equities look like a leveraged mania in which money arrived faster than judgment, and borrowers may not survive the drawdown. Samsung and SK Hynix now make up over 54% of the KOSPI, up from 16% in 2016, and margin loans hit a record 36 trillion won, double a year ago, as Koreans surrendered insurance policies to buy stocks. On July 14 Samsung fell 10.70% and SK Hynix 15.37%, and the KOSPI sits near 6,750 from above 8,000. The businesses and the AI buildout remain real. x.com