Strong preliminary earnings from Samsung Electronics triggered a broader chip-sector decline, dragging major U.S. indexes lower.
Samsung Electronics’ preliminary earnings report sent U.S. semiconductor stocks tumbling, pulling the Nasdaq Composite down 1.3% by midday. The Dow Jones Industrial Average and S&P 500 fell 0.4% and 0.6%, respectively, as investors sold shares across the sector.
The South Korean company reported a 129% year-over-year revenue increase and a 19-fold surge in operating profits, driven by AI hardware demand. However, results fell short of loftier expectations, prompting a 10% drop in Samsung’s stock and sharp declines in U.S. peers like Micron, Intel, and Lam Research.
Micron Technology slid 7.2%, Intel plunged 10.6%, and Lam Research lost 7.7%, amplifying losses in the tech-heavy Nasdaq. The sell-off reflects investor concerns over valuations and growth sustainability in the semiconductor space.