{"id":919103,"date":"2026-07-07T18:07:22","date_gmt":"2026-07-07T18:07:22","guid":{"rendered":"https:\/\/www.europesays.com\/us\/919103\/"},"modified":"2026-07-07T18:07:22","modified_gmt":"2026-07-07T18:07:22","slug":"chip-stocks-sell-off-as-high-expectations-overshadow-samsung-results","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/919103\/","title":{"rendered":"Chip stocks sell off as high expectations overshadow Samsung results"},"content":{"rendered":"<p><img decoding=\"async\" class=\"InlineVideo-videoThumbnail\" src=\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2026\/07\/108331507-17834374171783437414-47015832738-1080pnbcnews.jpg\" alt=\"Samsung shares slide despite profit exceeding Nvidia and Apple\"\/><\/p>\n<p>Investors dumped semiconductor stocks on Tuesday after results from <a href=\"https:\/\/www.cnbc.com\/quotes\/SSUN-FF\/\" rel=\"nofollow noopener\" target=\"_blank\">Samsung Electronics<\/a> failed to meet Wall Street&#8217;s lofty <a href=\"https:\/\/www.cnbc.com\/ai-artificial-intelligence\/\" rel=\"nofollow noopener\" target=\"_blank\">artificial intelligence<\/a> demand expectations. <\/p>\n<p>Shares dropped 8% even after the South Korean electronics company&#8217;s quarterly profit surpassed both <a href=\"https:\/\/www.cnbc.com\/quotes\/NVDA\/\" rel=\"nofollow noopener\" target=\"_blank\">Nvidia<\/a> and <a href=\"https:\/\/www.cnbc.com\/quotes\/AAPL\/\" rel=\"nofollow noopener\" target=\"_blank\">Apple<\/a>, and the company said it expects operating profit to jump $1,800%.<\/p>\n<p>The results are the latest sign on Wall Street that sometimes <a href=\"https:\/\/www.cnbc.com\/2026\/06\/05\/mythos-cybersecurity-earnings-palo-alto-crowdstrike.html\" rel=\"nofollow noopener\" target=\"_blank\">beating results isn&#8217;t enough<\/a> to please investors in the AI revolution. Previously, this market phenomenon has contributed to post-earnings declines for Nvidia and major cybersecurity stocks such as CrowdStrike and Palo Alto Networks.<\/p>\n<p>Korea-listed shares of South Korea&#8217;s <a href=\"https:\/\/www.cnbc.com\/quotes\/.KS11\/\" rel=\"nofollow noopener\" target=\"_blank\">Kospi<\/a> fell about 5% in sympathy with Samsung. <a href=\"https:\/\/www.cnbc.com\/quotes\/SKHY\/\" rel=\"nofollow noopener\" target=\"_blank\">SK Hynix,<\/a> which is slated to list shares on the Nasdaq this Friday, dropped about 7%. The company plans to raise $28 billion in the second-largest sale after <a href=\"https:\/\/www.cnbc.com\/quotes\/SPCX\/\" rel=\"nofollow noopener\" target=\"_blank\">SpaceX<\/a>. <\/p>\n<p>Tuesday&#8217;s selloff could also stem from a recalibration in expectations after memory&#8217;s historic run, or investors readying for SK Hynix&#8217;s listing this week. <\/p>\n<p>U.S memory makers <a href=\"https:\/\/www.cnbc.com\/quotes\/SNDK\/\" rel=\"nofollow noopener\" target=\"_blank\">Sandisk<\/a> and <a href=\"https:\/\/www.cnbc.com\/quotes\/MU\/\" rel=\"nofollow noopener\" target=\"_blank\">Micron Technology<\/a> dropped about 8% and 5%, respectively, in sympathy, while the <a href=\"https:\/\/www.cnbc.com\/quotes\/SOXX\/\" rel=\"nofollow noopener\" target=\"_blank\">iShares Semiconductor ETF<\/a> slumped about 5%. <a href=\"https:\/\/www.cnbc.com\/quotes\/INTC\/\" rel=\"nofollow noopener\" target=\"_blank\">Intel<\/a> and <a href=\"https:\/\/www.cnbc.com\/quotes\/AMAT\/\" rel=\"nofollow noopener\" target=\"_blank\">Applied Materials<\/a> dropped about 8% each, while <a href=\"https:\/\/www.cnbc.com\/quotes\/LRCX\/\" rel=\"nofollow noopener\" target=\"_blank\">Lam Research<\/a> dropped 7%. <a href=\"https:\/\/www.cnbc.com\/quotes\/AMD\/\" rel=\"nofollow noopener\" target=\"_blank\">Advanced Micro Devices<\/a> fell about 5%. <\/p>\n<p>Memory chip stocks have seen a massive run-up this year as a supply crunch, fueled by unrelenting artificial demand, allows businesses to set pricing. That&#8217;s lifted shares of Micron and Sandisk more than 220% and 570%, respectively, this year.  <\/p>\n<p>However, investors are growing increasingly concerned that AI spending can&#8217;t keep up with skyrocketing memory prices. <\/p>\n<p>Already, soaring memory costs have forced companies, including Apple and <a href=\"https:\/\/www.cnbc.com\/quotes\/MSFT\/\" rel=\"nofollow noopener\" target=\"_blank\">Microsoft<\/a>, to <a href=\"https:\/\/www.reuters.com\/world\/china\/chinas-deepseek-developing-its-own-ai-chip-sources-say-2026-07-07\/\" target=\"_blank\" rel=\"nofollow noopener\">hike prices<\/a> and offset the higher fees associated with building everyday consumer products. <\/p>\n<p>Tuesday&#8217;s selloff wasn&#8217;t helped by a <a href=\"https:\/\/www.reuters.com\/world\/china\/chinas-deepseek-developing-its-own-ai-chip-sources-say-2026-07-07\/\" target=\"_blank\" rel=\"nofollow noopener\">report<\/a> that Chinese AI startup Deepseek is working on its own chip to sidestep U.S. export bans and its dependence on Nvidia.<\/p>\n<p><img decoding=\"async\" class=\"InlineVideo-videoThumbnail\" src=\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2026\/07\/108331321-17834216241783421620-47011940887-1080pnbcnews.jpg\" alt=\"Samsung guides for record profit but shares still sell off\"\/><a href=\"https:\/\/www.google.com\/preferences\/source?q=https:\/\/www.cnbc.com\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Investors dumped semiconductor stocks on Tuesday after results from Samsung Electronics failed to meet Wall Street&#8217;s lofty artificial&hellip;\n","protected":false},"author":3,"featured_media":900125,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[21],"tags":[9203,691,4960,78262,738,133,11732,81,26041,370031,3722,43930,290110,250817,7995,87245,135,7070,14229,147,26039,36660,48569,36661,793,15243,59001,259091,158,12733,67,132,68],"class_list":["post-919103","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-advanced-micro-devices-inc","tag-ai","tag-apple-inc","tag-applied-materials-inc","tag-artificial-intelligence","tag-breaking-news-markets","tag-breaking-news-technology","tag-business-news","tag-crowdstrike-holdings-inc","tag-direxion-daily-semiconductor-bear-3x-shares","tag-enterprise","tag-intel-corp","tag-ishares-national-muni-bond-etf","tag-ishares-semiconductor-etf","tag-kospi-index","tag-lam-research-corp","tag-markets","tag-micron-technology-inc","tag-microsoft-corp","tag-nvidia-corp","tag-palo-alto-networks-inc","tag-samsung-electronics-co-ltd","tag-sandisk-corp","tag-sk-hynix-inc","tag-software","tag-south-korea","tag-space-exploration-technologies-corp","tag-spdr-sp-semiconductors","tag-technology","tag-the-edge","tag-united-states","tag-unitedstates","tag-us"],"share_on_mastodon":{"url":"","error":"Validation failed: Text character limit of 500 exceeded"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/919103","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=919103"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/919103\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/900125"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=919103"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=919103"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=919103"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}