🔥 Samsung Electronics: No. 1 Earnings, but HBM Developments Tell a Different Story - 2026.10.18

Hey~ it's me, Onion, your division chief who's watched the market for 30 years 🧅 Samsung Electronics is having another interesting day. Well, well~ the October 16 closing price was ₩217,000, up +4.58%, after falling as low as ₩207,500 the day before and then bouncing back. The earnings are the best in the world, so why is the stock price swinging around like this? Let's take a closer look.

📊 No. 1 in earnings, but why are foreign investors pulling out?

Reports say Samsung Electronics overtook Nvidia in quarterly operating profit ^[1]. Looking at the numbers alone, you'd think the market should be applauding, but the Kyunghyang Shinmun raised the same question: Why are foreign investors selling two companies that earn so much in a quarter? ^[2] That's what I'm most curious about, too.

The other thing to look at is investor flows. One analysis says net foreign selling during October's sharp market drop was extremely concentrated in Samsung Electronics and SK Hynix ^[3]. That's an observation highlighted in the article, not confirmation of what foreign investors are thinking. So you can see it as a perspective that looks to investor flows for an explanation of why earnings and share prices are moving in different directions.

🚀 The HBM field is expanding

This is where my eyes really lit up. A report says Samsung Electronics is working with foundry rival TSMC to use advanced processes in developing custom HBM for Nvidia, with plans to increase HBM volumes ^[4]. Teaming up with a rival? Isn't that a bit surprising? It reads like a move to ease the memory bottleneck in AI chips and help relieve supply shortages.

There's a technology angle, too. A broadcast report says Samsung is pursuing development of next-generation zHBM, which stacks HBM on top of a GPU ^[7]. Since the broadcast covers an industry technology direction, it's too early to treat it as a confirmed product schedule. There's also news that Samsung Electronics and SK Hynix are joining a large R&D center run by a U.S. equipment partner to accelerate new semiconductors based on next-generation equipment ^[5]. The article frames this as a response to China's technological catch-up. In other words, the South Korea-U.S. semiconductor alliance is gaining momentum.

☕ One lighthearted bit of news

There's also news that three products were named among TIME magazine's 'Best Inventions' in the U.S. ^[6]. Check the original article for the specific products. If they've won an invention award, shouldn't the market give them a round of applause at least once? Haha, that was one of my division-chief jokes.

🧅 Onion's take and the remaining uncertainties

I think the bullish scenario becomes clearer if HBM volumes actually increase and equipment cooperation leads to concrete results. However, the TSMC partnership, zHBM, and equipment research center are all still at the reporting or broadcast stage, so it's too early to treat them as confirmed catalysts. When foreign investor flows might turn around and how far China's catch-up will go are still open questions.

So let me leave you with one question: With No. 1 earnings and foreign selling happening at the same time, where will investor flows turn around first? ☕

📰 Reference News (6)

2

[What's the Economy?] If They Make 100 Trillion in a Quarter, Why Are Foreign Investors Selling Samsung Electronics and SK Hynix? - Kyunghyang Shinmun

경향신문 · 2026.10.17

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3

[In-Depth Analysis] "Big Tech Earnings Will Determine the KOSPI's Direction"... When Will Foreign Investor Flows Return to Samsung Electronics and SK Hynix?

네이버뉴스 · 2026.10.18

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4

Samsung Electronics to Increase HBM Volumes Using TSMC's Advanced Processes... Breaking Through the Memory Supply Crunch

네이버뉴스 · 2026.10.18

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5

Semiconductor Alliance between South Korea and the U.S. Gains Momentum Amid China's Technological Catch-Up; Samsung Electronics and SK Hynix Team Up with U.S. Partners

네이버뉴스 · 2026.10.18

📰 View original

6

Three Samsung Electronics Products Named Among TIME Magazine's 'Best Inventions' in the U.S. - Jungbu Ilbo

중부일보 · 2026.10.18

📰 View original

📺 Reference Videos (1)

7

YouTube

Samsung Electronics to Stack HBM on Top of GPUs... Pursuing Development of Next-Generation zHBM

▶서울경제TV·2026.10.16