--- title: "Samsung Electronics' second-quarter performance fell short of high expectations in the capital market, leading to severe fluctuations in the global semiconductor sector" type: "News" locale: "en" url: "https://longbridge.com/en/news/292022810.md" description: "Although Samsung Electronics' second-quarter performance saw a significant year-on-year increase, its stock price plummeted by 8% due to not meeting Wall Street's high expectations for AI chip demand. As a result, the global semiconductor sector faced a sell-off, with the South Korean KOSPI index dropping by about 5%. Stocks of major companies such as SK Hynix, Intel, and Micron also experienced substantial declines. The market reflects that investors are adjusting valuations following the AI boom and preparing for SK Hynix's upcoming massive IPO" datetime: "2026-07-08T06:34:45.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/292022810.md) - [en](https://longbridge.com/en/news/292022810.md) - [zh-HK](https://longbridge.com/zh-HK/news/292022810.md) --- # Samsung Electronics' second-quarter performance fell short of high expectations in the capital market, leading to severe fluctuations in the global semiconductor sector Due to Samsung Electronics' latest second-quarter performance failing to meet Wall Street's extremely high expectations for artificial intelligence (AI) chip demand, the global capital market's semiconductor sector experienced widespread selling on Tuesday. Although Samsung Electronics expects its operating profit for the quarter to soar 19 times year-on-year (approximately 1800%), and its net profit to surpass that of U.S. tech giants Apple and Nvidia, its stock price still plummeted 8% on the day due to not meeting the stringent standards previously raised by the AI boom. This market reaction once again confirms a phenomenon that is prevalent on Wall Street: during an AI-driven valuation cycle, even companies that deliver extraordinary financial results often struggle to satisfy investors. Previously, Nvidia, along with cybersecurity leaders such as CrowdStrike and Palo Alto Networks, also faced similar turbulence where their stock prices fell after releasing earnings reports. Affected by the sharp decline in Samsung Electronics' stock price, the Korea Composite Stock Price Index (KOSPI) fell approximately 5% on the same day. As the world's second-largest memory chip manufacturer, South Korea's SK Hynix, which plans to officially list on the Nasdaq market this Friday, saw its stock price drop by about 6%. It is reported that SK Hynix's U.S. listing aims to raise $28 billion, making it the second-largest initial public offering (IPO) project in the U.S. stock market this year, following SpaceX. Market analysts believe that Tuesday's sell-off reflects, to some extent, investors' expectation adjustments after the historic surge in memory chips, while also indicating that funds are preparing for SK Hynix's massive subscription and listing this week. The global semiconductor industry supply chain and related capital markets also experienced severe chain reactions: U.S. semiconductor stocks showed significant volatility: Major U.S. memory chip manufacturers SanDisk and Micron Technology saw their stock prices drop by approximately 7% and 5%, respectively; Intel fell 9%; Marvell Technology, Lam Research, and Applied Materials all saw declines exceeding 6%; and AMD dropped about 6%. The iShares Semiconductor Exchange-Traded Fund (ETF), which measures the overall industry performance, also plummeted about 5%. Industry valuations face a logical reshaping: Driven by sustained strong demand in the AI sector, the global memory chip market has encountered supply bottlenecks this year, prompting related companies to gain stronger pricing power. In this context, Micron Technology and SanDisk's stock prices have achieved astonishing increases of over 229% and 581%, respectively, this year. However, there are widespread concerns in the market about whether investments in AI infrastructure can continue to support the currently high chip prices. Industry analysts point out that the soaring costs of core components such as chips have forced downstream tech giants, including Apple and Microsoft, to raise retail prices for their consumer products to pass on supply chain costs. Additionally, there are rumors in the market that Chinese AI startup DeepSeek is attempting to develop its own chips to circumvent external export controls and reduce reliance on U.S. companies like Nvidia This news further intensified the adjustment pressure faced by the semiconductor sector's capital on Tuesday ### Related Stocks - [SMSN.UK](https://longbridge.com/en/quote/SMSN.UK.md) - [SSNGY.US](https://longbridge.com/en/quote/SSNGY.US.md) - [04335.HK](https://longbridge.com/en/quote/04335.HK.md) - [MU.US](https://longbridge.com/en/quote/MU.US.md) - [INTC.US](https://longbridge.com/en/quote/INTC.US.md) - [INTW.US](https://longbridge.com/en/quote/INTW.US.md) - [MUD.US](https://longbridge.com/en/quote/MUD.US.md) - [07709.HK](https://longbridge.com/en/quote/07709.HK.md) - [07747.HK](https://longbridge.com/en/quote/07747.HK.md) - [MUU.US](https://longbridge.com/en/quote/MUU.US.md) - [07347.HK](https://longbridge.com/en/quote/07347.HK.md) - [09347.HK](https://longbridge.com/en/quote/09347.HK.md) - [09747.HK](https://longbridge.com/en/quote/09747.HK.md) - [MULL.US](https://longbridge.com/en/quote/MULL.US.md) - [LINT.US](https://longbridge.com/en/quote/LINT.US.md) - [MUYY.US](https://longbridge.com/en/quote/MUYY.US.md) - [MUZ.US](https://longbridge.com/en/quote/MUZ.US.md) - [03121.HK](https://longbridge.com/en/quote/03121.HK.md) - [INYY.US](https://longbridge.com/en/quote/INYY.US.md) ## Related News & Research - [Weekly Recap: ADS offering, Nasdaq listing and Cheongju 100T investment](https://longbridge.com/en/news/291849018.md) - [Time to rein in leveraged ETFs](https://longbridge.com/en/news/291953047.md) - [S Korea's Rebellions targets IPO next year, followed by potential US listing -CEO](https://longbridge.com/en/news/292028690.md) - [SK Telecom pursues construction of 15 GW AI data center](https://longbridge.com/en/news/291728658.md) - [Samsung Non-Chip Workers Plan Protest Rally Over Bonus Disparity as AI Memory Boom Widens Internal Pay Gap](https://longbridge.com/en/news/291911119.md)