Samsung Electronics shares dropped nearly 7% after reporting a 19-fold jump in Q2 operating profit, weighing on regional tech stocks.
Asian chip stocks retreated on Tuesday, erasing gains from a U.S. rally as investors questioned the sustainability of AI-driven demand. Samsung Electronics fell nearly 7% despite revealing a 19-fold increase in second-quarter operating profit, while SK Hynix also declined, dragging South Korea’s KOSPI index down around 5%.
The pullback followed a Monday rally in U.S. chip stocks, spurred by Broadcom’s extended deal with Apple to supply custom chips through 2031. The S&P 500 and Nasdaq closed higher, but Nasdaq futures fell over 1% in pre-market trading on Tuesday, reflecting broader tech sector jitters.
Analysts noted that much of the upside from soaring chip demand may already be priced in, with Samsung’s shares up more than 100% year-to-date. Concerns persist about whether the AI chip boom can maintain its current momentum.