Micron Technology NASDAQ:MU shares dropped more than 5% in Tuesday premarket trading after Samsung Electronics posted preliminary second-quarter results that, despite showing sharp earnings growth, did little to calm investor concerns about the durability of AI-driven memory demand.
The broader memory sector also weakened. Samsung shares fell about 7% in Seoul trading, while SK Hynix (HXSCL) declined 6.1%. Analysts noted Samsung's stock had rallied ahead of the earnings update, suggesting much of the positive outlook had already been reflected in its valuation. Market attention has also shifted to SK Hynix's planned Nasdaq listing later this week.
Samsung reported preliminary operating profit of 89.4 trillion won for the second quarter, up from 4.7 trillion won a year earlier. Revenue climbed 129% year over year to 171 trillion won, supported by elevated memory prices and continued AI-related demand despite higher employee compensation costs.