{"id":750270,"date":"2026-07-08T10:08:14","date_gmt":"2026-07-08T10:08:14","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/750270\/"},"modified":"2026-07-08T10:08:14","modified_gmt":"2026-07-08T10:08:14","slug":"samsung-and-ai-chip-stocks-fall-after-19-fold-rise-in-profit-fails-to-impress-investors","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/750270\/","title":{"rendered":"Samsung and AI chip stocks fall after 19-fold rise in profit fails to impress investors"},"content":{"rendered":"\n

What happened: Samsung Electronics (005930.KS<\/a>) stock slumped in Asia, leading a broader decline in chip stocks as investors took profits from the AI-fueled rally. <\/p>\n

What’s behind the move:\u00a0The South Korean memory maker reported a preliminary operating profit of about $58 billion for the April\u2013June quarter, marking a 19-fold jump from a year ago and exceeding analyst expectations. <\/p>\n

Despite the impressive earnings, Samsung stock fell as much as 10% in Seoul as investors locked in profits after the shares had surged nearly 150% this year. <\/p>\n

“Results were ‘only’ 6% ahead of estimates, and it seems to have brought in a bout of profit taking,” Deutsche Bank analysts wrote on Tuesday morning. <\/p>\n

David Morrison, senior market analyst at Trade Nation, noted, “It seems that investors are concerned that semiconductor and other AI-adjacent stocks may struggle to maintain such high levels of sales and margins going forward.” <\/p>\n

Memory chip giant Micron (MU<\/a>) sank more than 4%, while Sandisk (SND<\/a>K) and Western Digital (WDC<\/a>) also fell more than 7%. <\/p>\n

What else you need to know: Investors were closely watching Samsung’s results as the company, along with peers SK Hynix (000660.KS<\/a>) and US-based Micron, has become a bellwether for the AI trade. <\/p>\n

A critical bottleneck in the supply of high-bandwidth memory for data center chips has sent shares of the major manufacturers soaring this year, with Wall Street seeing supply constraints well into 2027. <\/p>\n

Samsung remains the world’s largest memory manufacturer, leading in both DRAM and NAND flash production. <\/p>\n

Samsung, SK Hynix, and Micron topped a $1 trillion valuation in May before pulling back amid growing concerns that the AI trade may be in a bubble. <\/p>\n

Ines Ferre is a Senior Business Reporter for Yahoo Finance covering the US stock market, publicly traded companies, and commodities. <\/p>\n

Click here for in-depth analysis of the latest stock market news and events moving stock prices<\/a> <\/p>\n

Read the latest financial and business news from Yahoo Finance<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"What happened: Samsung Electronics (005930.KS) stock slumped in Asia, leading a broader decline in chip stocks as investors…\n","protected":false},"author":2,"featured_media":750271,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[182,181,507,151286,244679,160,49643,74,321748],"class_list":["post-750270","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-chip-stocks","tag-david-morrison","tag-investors","tag-samsung-electronics","tag-technology","tag-trade-nation"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/750270","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=750270"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/750270\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/750271"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=750270"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=750270"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=750270"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}