Investors dumped semiconductor stocks on Tuesday. samsung electronics It failed to meet Wall Street’s expectations for high demand for artificial intelligence.
Shares fell 8% even though the South Korean electronics company’s quarterly profit beat both Nvidia and applethe company said it expects operating profit to increase 1,800%.
The results are the latest sign from Wall Street that better results will not be enough to satisfy investors in the AI revolution. In the past, this market phenomenon has contributed to post-earnings declines in Nvidia and major cybersecurity stocks such as CrowdStrike and Palo Alto Networks.
Korean listed stocks Kospi It fell about 5%, in line with Samsung. SK Hynix, The company, which is scheduled to list on the Nasdaq this Friday, fell about 7%. The company plans to raise $28 billion in its next largest sale. space x.
Tuesday’s decline could also be attributed to a readjustment of expectations after Memory’s historic stock price rally, as well as investors’ preparation for this week’s listing of SK Hynix.
us memory manufacturer sandisk and micron technology Compassion decreased by about 8% and 5%, respectively. iShares Semiconductor ETF It fell by about 5%. intel and applied materials Each decreased by approximately 8%, but ram research It fell 7%. advanced micro device It fell by about 5%.
Memory chip stocks have surged this year as relentless artificial demand has tightened supply and given companies the ability to set prices. This has helped Micron and SanDisk stock prices rise more than 220% and 570%, respectively, this year.
But investors are increasingly worried that AI spending won’t be able to keep up with soaring memory prices.
Already, rising memory costs are causing Apple and microsoftto raise prices and offset the high fees associated with manufacturing everyday consumer products.
Reports that Chinese AI startup DeepSeek is working on developing its own chips to circumvent a U.S. export ban and dependence on Nvidia didn’t help Tuesday’s decline.
