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Samsung posted a monster preliminary quarter, and chip stocks sold off anyway. That sounds backward until you remember how much optimism was already baked into the AI trade. Samsung's operating profit surged almost 19-fold from last year, but investors dumped shares across Asia, Europe, and the U.S. as doubts grew about whether AI infrastructure spending can keep rising at this pace. In chip land, great numbers are only great if they beat the fantasy.
Global semiconductor stocks fell on Tuesday after Samsung Electronics released preliminary second-quarter results that looked spectacular on paper but failed to satisfy investors.
Samsung forecast operating profit of 89.4 trillion won, or about $58.4 billion, nearly 19 times higher than a year earlier. Revenue is expected to more than double to 171 trillion won. The profit figure also beat ******* yst expectations.
That still was not enough. Samsung shares fell around 7% in Seoul, while rival SK Hynix dropped about 6%. South Korea's KOSPI index slid almost 5%.