- Semiconductor stocks dropped as investors overlooked Samsung's upbeat results.
- It's the latest sign that beating results isn't enough to please investors in the AI revolution
- Chinese AI startup Deepseek is reportedly building its own chip to sidestep U.S. export bans.
The results are the latest sign on Wall Street that sometimes
beating results isn't enough 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.
Korea-listed shares of South Korea's
Kospi fell about 5% in sympathy with Samsung. SK Hynix, 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 SpaceX.
Tuesday's selloff could also stem from a recalibration in expectations after memory's historic run, or investors readying for SK Hynix's listing this week.
U.S memory makers
Sandisk and Micron Technology dropped about 8% and 5%, respectively, in sympathy, while the iShares Semiconductor ETF slumped about 5%. Intel and Applied Materials dropped about 8% each, while Lam Research dropped 7%. Advanced Micro Devices fell about 5%.
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's lifted shares of Micron and Sandisk more than 220% and 570%, respectively, this year.
However, investors are growing increasingly concerned that AI spending can't keep up with skyrocketing memory prices.
Tuesday's selloff wasn't helped by a
report that Chinese AI startup Deepseek is working on its own chip to sidestep U.S. export bans and its dependence on Nvidia.
<small>Source: CNBC</small>
Business
Chip stocks sell off after Samsung earnings fall short of high AI bar
CNBC
July 07, 2026
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