AI memory and chip stocks fell Tuesday even after Samsung Electronics (SSNLF) projected a 19-fold jump in Q2 operating profit, as investors questioned whether the AI infrastructure boom has already priced in too much good news.
Samsung guided Q2 operating profit of 89.4 trillion won, or about $58.4 billion, up from 4.7 trillion won a year earlier and ahead of the LSEG SmartEstimate cited by Reuters. Revenue rose to 171 trillion won from 133.9 trillion won in the prior quarter, helped by strong AI memory demand.
The stock still dropped about 7% in Korea, while SK Hynix fell around 6% and the Kospi slid nearly 5%. Reuters quoted Petra Capital's Albert Yong as saying Samsung's earnings were widely expected and largely priced in after the stock's rally.
The weakness spilled into U.S. names. Micron NASDAQ:MU fell nearly 5% premarket, Western Digital NASDAQ:WDC lost about 7%, Seagate NASDAQ:STX dropped nearly 6%, and Sandisk NASDAQ:SNDK declined about 5%. Nvidia NASDAQ:NVDA, AMD NASDAQ:AMD, Marvell NASDAQ:MRVL, Intel NASDAQ:INTC, Lam Research NASDAQ:LRCX, Applied Materials NASDAQ:AMAT and ASML NASDAQ:ASML also traded lower.