Chip stocks crash despite Samsung's profit surge as AI demand expectations reset valuations
15 Sources
[1]
Chip stocks sell off after Samsung earnings fall short of high AI bar
Samsung shares slide despite profit exceeding Nvidia and Apple Investors dumped semiconductor stocks on Tuesday after results from Samsung Electronics failed to meet Wall Street's lofty artificial intelligence demand expectations. Shares dropped 8% even after the South Korean electronics
[2]
The AI Trade Is Off to a Hot Start This Week as Chip, Memory Stocks Surge
Get personalized, AI-powered answers built on 27+ years of trusted expertise. The AI trade is off to a strong start this week, with several chip and memory stocks among the biggest gainers in the S&P 500 and Nasdaq on Monday. Chipmaker Advanced Micro Devices (AMD) was leading S&P gainers, up 8%
[3]
US stocks today: S&P 500 ends down as AI worries hit chipmakers
U.S. markets closed lower as chip stocks declined on concerns the AI-driven rally may be overstretched. Losses in Micron and other semiconductor firms weighed on indices, while rising competition from China and unmet expectations after Samsung's earnings added pressure. Investors are reassessing
[4]
Micron, Intel shares crash up to 8% as Samsung fails to calm concerns over AI
Global semiconductor stocks fell sharply as Micron and Intel dropped up to 8%, tracking weakness in Asian peers despite strong Samsung earnings. Investors are reassessing valuations after a strong AI-led rally, while concerns over custom chip development and future demand are making markets more
[5]
U. S Stock Market today: Why are Nvidia, Micron Technology, Sandisk, Intel shares down on Tuesday?
U. S Stock Market on Tuesday: Chip stocks have been some of the biggest winners of the AI trade so far this year amid hopes of insatiable AI demand, though concerns of the sector being overbought as well as profit-taking by investors have led to some volatility lately. Nvidia fell 1.5 per cent in
[6]
Asia stocks fall as AI valuation fears overshadow Samsung's blockbuster earnings By Investing.com
Investing.com -- Asia stocks retreated on Tuesday as investors questioned whether future earnings growth can justify elevated artificial intelligence-related valuations, sending semiconductor shares lower despite Samsung Electronics Co Ltd (KS:005930) posting another quarter of record
[7]
US Stocks: Micron, Intel and other chip stocks fall up to 11% after record-breaking rally
Chip stocks experienced a significant downturn, with major AI rally leaders seeing sharp profit-taking after a record quarter. The VanEck Semiconductor ETF plunged over 5%, led by Micron, Intel, and AMD. Concerns over potential AI computing oversupply, fueled by Meta's plans, prompted investors to
[8]
Chip stocks selloff extends on valuation, Meta's pivot fears By Investing.com
Investing.com -- The Wednesday selloff in U.S. chip shares extended into Thursday's premarket trading as lofty valuations and heavy AI spending by tech companies weigh on investor sentiment. Shares in Micron and Western Digital fell about 2.1% each by 04:42 ET. Coherent and Marvell Technology shed
[9]
Nasdaq sinks as AI worries hit chipmakers
July 7 (Reuters) - The Nasdaq ended sharply lower on Tuesday, weighed down by losses in Micron Technology and other chipmakers due to mounting doubts about the sustainability of Wall Street's AI-driven rally. Chip stocks in Asia and the United States dropped after memory chip giant Samsung
[10]
Asia chip stocks slide on OpenAI efficiency gains, Meta cloud plan reports By Investing.com
Investing.com-- Asian semiconductor stocks fell on Thursday, tracking a sharp overnight selloff in U.S. chipmakers after reports that OpenAI had achieved significant efficiency gains in running its artificial intelligence models and that Meta Platforms Inc (NASDAQ:META) was exploring ways to
[11]
S&P 500 dips as AI worries hit chipmakers
July 7 (Reuters) - The S&P 500 dipped on Tuesday, weighed down by losses in Micron Technology and other chipmakers due to mounting doubts about the sustainability of Wall Street's AI-driven rally. Chip stocks in Asia and the United States dropped after memory chip giant Samsung Electronics'
[12]
S&P 500 down, Nasdaq slides as AI chip worries persist
July 7 (Reuters) - The S&P 500 slipped and the Nasdaq dropped sharply on Tuesday, weighed by losses in chip stocks amid doubts over the durability of the AI-led rally despite robust Samsung earnings, while a report on China's DeepSeek making an AI chip also hit sentiment. Nvidia fell 1.8% after
[13]
Nasdaq set to fall at open as DeepSeek's AI chip push rattles markets
July 7 (Reuters) - The Nasdaq was set to open lower on Tuesday amid declining chip stocks, with investors questioning the momentum of the AI-led rally despite Samsung's strong earnings, while a report on China's DeepSeek making its own AI chip also hit sentiment. Nvidia fell 1.5% in premarket
[14]
Global AI Stocks Tumble as Samsung Electronics Results Prompt Tech Pullback
U.S. chip stocks fell sharply premarket, extending the reach of a global wobble in artificial intelligence-related stocks following Samsung Electronics' preliminary second-quarter earnings. Despite recording a 19-fold jump in second-quarter operating profit, Samsung shares slid 6.9% in Korean
[15]
Chip and AI stocks attempt a rebound, Asia leads the way
(updated: prices, experts and details) FRANKFURT/SEOUL/NEW YORK (dpa-AFX) - In Asian trading on Friday, chip stocks began to recover, a move that also spread to Europe. After the Nasdaq 100 in the US had headed into the extended weekend the day before still looking very weak, the AI beneficiaries
Share
Copy Link
Major semiconductor stocks plunged even after Samsung reported a 1,800% profit jump, signaling investor expectations for AI demand have reached unsustainable levels. Micron and Intel fell up to 8% as concerns mount over whether the AI-driven rally has overextended valuations across the chip sector.
Samsung's Record Profit Fails to Satisfy Sky-High AI Demand Expectations
Semiconductor stocks experienced a sharp selloff on Tuesday despite Samsung Electronics reporting extraordinary quarterly results that exceeded both Nvidia and Apple's earnings
1
. The South Korean electronics giant forecast an 1,800% jump in operating profit, yet its shares still dropped 8% in what analysts are calling a recalibration of investor expectations for AI demand1
. The market reaction underscores a growing pattern where even exceptional performance fails to meet the lofty benchmarks set during the AI revolution, a phenomenon previously seen with Nvidia, CrowdStrike, and Palo Alto Networks1
.The broader impact rippled across global markets as South Korea's Kospi fell about 5%, while SK Hynix, preparing for its Nasdaq listing this Friday with plans to raise $28 billion in the second-largest sale after SpaceX, dropped approximately 7%
1
. Circuit breakers were triggered during the session as volatility in AI-linked stocks intensified, with the Kospi falling as much as 8.2% intraday4
.
Source: ET
Chip Stocks Face Mounting Pressure Amid Valuation Concerns
U.S. semiconductor stocks bore the brunt of the selloff, with Micron Technology falling more than 7% and Intel crashing nearly 8%
4
. The PHLX chip index declined as memory stocks led losses, while the S&P 500 lost 34.07 points, or 0.45%, to end at 7,503.36 points3
. The Nasdaq Composite lost 310.06 points, or 1.19%, to 25,811.103
.Zachary Hill, head of portfolio management at Horizon Investments, explained the market sentiment: "The story of today is the story of the last few weeks, and that's rotation after the blistering run in the AI buildout, semis and memory. Expectations have gotten to be almost impossible to beat for these companies"
3
. This volatility in AI-linked stocks reflects investor concerns over whether stock valuations have outpaced the actual pace of AI infrastructure growth.
Source: ET
DeepSeek Development Adds Pressure on Nvidia and Hardware Suppliers
Adding to investor concerns, Reuters reported that Chinese startup DeepSeek is developing its own AI chip for inference tasks, potentially reducing its reliance on Nvidia and Huawei chips
3
5
. While the project remains at an early stage, it reflects a broader push by Chinese AI companies to build their own hardware amid U.S. export controls4
. This development raises questions about whether large AI companies and startups will shift toward custom chips, potentially fragmenting the AI hardware market and changing demand outlooks for established suppliers4
.Nvidia fell 1.5% in premarket trading following the DeepSeek news, while memory chipmakers drove additional losses with Western Digital down 6.3% and Sandisk losing 4.6%
5
. Marvell Technology also declined 4.5% amid sector-wide weakness5
.Related Stories
Analysts Maintain Bullish Outlook Despite Recent Volatility
Despite the turbulence, Bank of America analysts characterized the recent slump as "a healthy reset, not a structural change in AI demand," suggesting that periods of consolidation in the tech sector are "often followed by renewed momentum as investors regain confidence in the next leg of earnings and capex growth"
2
. The analysts expect cloud and AI spending to reach $1.5 trillion next year, up about 40% to 50% year-over-year, with spending spread among multiple sectors including memory, chips, and networking hardware2
.The AI trade showed resilience earlier in the week, with chipmaker Advanced Micro Devices leading S&P gainers with an 8% rise on Monday
2
. The Philadelphia Semiconductor Index rose more than 3% while the Roundhill Memory ETF surged 8%, demonstrating the sector's continued appeal despite recent setbacks2
.Market Sentiment Shifts as Investors Reassess AI-Driven Market Rally
The selloff marks the latest bout of volatility among memory chipmakers and other AI-related stocks as investors worry that sharp gains related to the buildout of AI data centers may have left shares too pricey . Samsung's stock had already more than doubled this year before Tuesday's fall, leaving little room for even a strong earnings surprise
4
.Market sentiment now hinges on whether investor expectations for AI remain sustainable. The upcoming SK Hynix Nasdaq listing represents another test of appetite for chip stocks, particularly as the company seeks to raise capital in what would be the second-largest offering after SpaceX
1
. Investors are becoming more selective even for companies tied to AI infrastructure, questioning how quickly AI spending will translate into profits across the broader AI ecosystem4
. The shift suggests that beating earnings may no longer be enough—companies must now exceed expectations that have reached what some analysts describe as nearly impossible levels.
Source: ET
References
Summarized by
Navi
Related Stories
Tech selloff deepens as AI cost fears and hawkish Fed expectations trigger 2% Nasdaq plunge
23 Jun 2026•Business and Economy
Nvidia's China Uncertainty Impacts Tech Stocks Amid AI Boom and Market Volatility
29 Aug 2025•Technology
AI Stocks Rally as CoreWeave and Super Micro Report Surging Demand for AI Infrastructure
12 Aug 2026•Business and Economy
Recent Highlights
1
AI Leaders Warn UN Security Council of Existential Risks, Call for Global AI Governance
Policy and Regulation
2
Meta Unveils Camera-Free AI Glasses and Muse Integration Amid Privacy Debate at Connect 2026
Technology
3
OpenAI Halts AI Agent Training After Rogue Systems Breach Government Websites Across Multiple Countries
Technology
Recent Highlights
Today's Top Stories
Don’t drown in AI news. We cut through the noise - filtering, ranking and summarizing the most important AI news, breakthroughs and research daily. Follow topics that matter to you and stay ahead.
