Key Takeaways
- Samsung Electronics (005930) reported a massive 19-fold increase in Q2 operating profit to 89.4 trillion won ($58.4 billion), yet shares tumbled as much as 8% on oversupply fears.
- ADNOC secured a long-term agreement to supply 1 million metric tonnes per annum (mmtpa) of LNG to Japan's INPEX (1605) from the Ruwais project.
- Long-term commitments for the Ruwais LNG project have now surpassed 90% of total capacity, with nearly 23% of that volume dedicated to Japanese customers.
- The semiconductor market is showing signs of a "speed adjustment" as investors weigh record AI-driven profits against potential future gluts in conventional memory.
Samsung’s Record Profit Met with Market Skepticism
Samsung Electronics (005930) posted a staggering preliminary operating profit of 89.4 trillion won ($58.4 billion) for the second quarter of 2026, representing an 1,810% jump from the previous year. This performance was driven by the ongoing AI boom, which has sent prices for High-Bandwidth Memory (HBM) and conventional DRAM soaring. Despite the record-breaking figures, the company’s stock price fell sharply, closing down nearly 8% as investors shifted focus toward potential oversupply in the broader memory sector.
Analysts noted that while AI demand remains robust, worries are mounting that a rapid expansion in production capacity could lead to a surplus of conventional chips by 2027. Market sentiment was further dampened by an earnings miss on the revenue side, with the reported 171 trillion won falling slightly short of some bullish analyst estimates. Additionally, a new wage deal requiring Samsung to set aside significant funds for employee bonuses impacted the final bottom-line perception for some institutional traders.
ADNOC Strengthens Energy Ties with Japan
The Abu Dhabi National Oil Company (ADNOC) continues its aggressive commercialization of the Ruwais LNG project, announcing a new 15-year Sales and Purchase Agreement with Japan’s INPEX (1605). Under the deal, ADNOC will supply 1 mmtpa of liquefied natural gas, further cementing the UAE's role as a critical energy partner for Japan. This agreement follows a series of similar deals with other Japanese utilities, including Osaka Gas and Mitsui & Co.
With the INPEX contract, ADNOC confirmed that more than 90% of the Ruwais project's 9.6 mmtpa total capacity is now committed under long-term agreements. Notably, nearly 23% of the project's output is now earmarked for Japanese buyers, highlighting Japan's strategic move to secure stable energy supplies amid global transition efforts. The Ruwais facility, which is designed to be one of the world's lowest-carbon-intensive LNG plants, is on track to begin commercial operations in 2028.
Diverging Paths in Global Markets
The contrasting news from the tech and energy sectors highlights a broader market trend where "old energy" remains a bastion of long-term stability while "new tech" faces extreme volatility. While ADNOC is successfully locking in decade-long commitments for its gas assets, Samsung is navigating a hyper-cyclical semiconductor environment where even record profits cannot fully insulate a stock from future supply-demand anxieties.
Investors are increasingly looking for "proof of sustainability" in AI-related growth, as evidenced by the sharp sell-off in South Korean chip stocks following the Samsung announcement. Meanwhile, the energy sector's focus on long-term Sales and Purchase Agreements (SPAs) provides a predictable revenue roadmap that stands in stark contrast to the rapid price fluctuations currently seen in the global memory chip market.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.