Samsung Electronics Co., the world’s largest producer of memory chips and smartphones, experienced its sharpest stock rally in nearly four years, with shares climbing as much as 8.6% on Friday. The surge ends a five-day losing streak and is attributed to growing perceptions of the stock’s undervaluation after months of declines.
Despite the rebound, Samsung shares are still down nearly 32% year-to-date, weighed by concerns over missing out on the AI boom and risks tied to potential U.S. protectionist trade policies under Donald Trump. Analysts, however, suggest Friday’s rise was driven by technical factors, with shares bouncing back from the key psychological level of 50,000 won ($35.70).
SK Kim, an analyst at Daiwa Securities, noted the rise reflects a “technical rebound,” which could bolster investor sentiment. Trading at 53,800 won by mid-afternoon, Samsung remains discounted by more than 10% compared to its one-year forward book value, according to Bloomberg data.
While the rally has sparked optimism, some investors remain cautious about the company’s long-term prospects.
