Samsung drops second day in a row as sell-offs continue

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In spite of record-breaking results for several consecutive quarters, the market deems Samsung stock more than a bit overvalued at the moment. The shares closed at under $70 after today’s trading in South Korea, with both domestic and foreign investors continuing to sell off their holdings in the tech giant. As a result, Samsung’s looking at two consecutive drops of 1.5%. This constitutes its worst market performance in four months.

So, not that bad yet but definitely cause for concern among swing traders and the like. As always, plenty of factors are influencing the market and it’s rare to be able to attribute any given one to a particular trend. Though South Korea’s overall prospects in the global semiconductor market are currently speculated to be the number one reason for this drop.

Are investors wrong to doubt Samsung’s ability to continue dominating in chips?

Namely, the United States government has been eyeing a bigger share of the chipmaking pie lately. Not to mention that its plan to do so also includes Samsung. The company reportedly already sanctioned an enormous investment in Texas and is expected to announce the move officially in less than a week’s time, shoulder-to-shoulder with both the White House and Blue House officials.

In the meantime, Samsung is still trying to catch-up to Intel. Yet even if it does so, any such triumph is likely to be short-lived, as the American silicon juggernaut is already amid a 20$ billion reinvestment push. That particular move is said to have left Samsung officials confused more than anything else.

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