Samsung’s record Q2 operating profit triggered a sector-wide selloff despite strong year-to-date gains for Micron and SanDisk.
Memory and storage stocks fell sharply in early trading Tuesday after Samsung Electronics reported a preliminary Q2 operating profit of $58 billion, a 19-fold increase from the prior year. Micron Technology, SanDisk, and Western Digital each dropped 7%, while Seagate declined 5% and the Roundhill Memory ETF slid 6%.
The selloff reversed Monday’s rebound, despite Micron and SanDisk posting year-to-date gains of 245% and 635%, respectively. Analysts at UBS and Bank of America described the pullback as a healthy reset, citing Micron’s $50 billion Q4 guidance and an expected HBM bottleneck through 2027 as supportive of the long-term bull case.
Samsung shares also fell, declining as much as 10% intraday in Seoul, despite the record profit that exceeded analyst estimates. The broader market remained unaffected, with the Dow trading higher Tuesday morning.