Semiconductor Stocks Fall Despite Samsung’s Record Profit Forecast

Semiconductor stocks declined Tuesday after Samsung Electronics reported quarterly results that exceeded Nvidia and Apple profits but fell short of Wall Street expectations for artificial intelligence demand. Samsung shares dropped 8% even as the company stated it expects operating profit to jump 1,800%.

Cnbc reported that the results mark the latest instance where beating earnings has not satisfied investors focused on AI growth.

Korea-listed shares of the Kospi fell about 5%. SK Hynix shares dropped about 7%; the company is scheduled to list on the Nasdaq this Friday and plans to raise $28 billion. U.S. memory makers Sandisk and Micron Technology shares fell about 8% and 5%, respectively.

The iShares Semiconductor ETF slumped about 5%. Intel and Applied Materials each dropped about 8%, Lam Research fell 7%, and Advanced Micro Devices declined about 5%. Micron shares have risen more than 220% this year and Sandisk shares have risen more than 570%.

Cnbc reported that a supply crunch driven by artificial intelligence demand has allowed memory chip makers to raise prices, prompting Apple and Microsoft to increase prices on consumer products. Investors have grown concerned that AI spending may not sustain current memory prices. Cnbc reported that a separate development involving Chinese AI startup Deepseek developing its own chip to avoid U.S.

Export restrictions added to the pressure on semiconductor shares.