Samsung Electronics shares erased early gains and at one point fell as much as 2.9% after the company reported weaker-than-expected profit in its chip business and said it would announce a shareholder return plan by the end of January. The stock had risen as much as 2.9% at the open.
The chipmaker's semiconductor division saw profit surge 15-fold, but the result still fell slightly short of market expectations, cooling some of the optimism around the artificial intelligence infrastructure boom. In the three months through September, the division posted operating profit of 106.5 trillion won (about $80 billion), below the analysts' average estimate of 108.5 trillion won.
The Kospi index fell 1.5%. Kang DaeKwun, chief executive of Life Asset Management, said: "Samsung is once again falling behind SK Hynix. Its decision to delay announcing specific shareholder return measures highlights the importance of more active shareholder engagement in supporting better corporate decision-making and creating long-term value."
Memory chip peer SK Hynix's gain narrowed from 6.7% to 2.7%.
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