Intel, AMD, and Applied Materials drop 8-10% after Samsung’s $58B profit fails to offset AI valuation worries.
Shares of Intel, AMD, and Applied Materials fell 8-10% in early trading after Samsung Electronics reported a record $58 billion quarterly profit, which failed to reassure investors about stretched chip valuations. The iShares Semiconductor ETF (SOXX) declined 6%, while the Dow remained at record levels, signaling a sector-specific selloff.
Samsung’s profit surged 19-fold year-over-year, beating estimates, but shares dropped 7% in Seoul as Deutsche Bank noted results were only 6% ahead of forecasts. AMD’s 208x P/E and Applied Materials’ 30%+ growth guidance left both stocks vulnerable to earnings risks in coming quarters.
Intel (INTC) fell to $110, AMD (AMD) to $508, and Applied Materials (AMAT) to $532, reversing Monday’s gains. The broader chip sector’s decline highlights investor caution despite strong earnings from Samsung.