Investors reacted negatively to Samsung’s Q2 results despite a 19x profit jump, signaling concerns over memory price growth slowdown.
Samsung reported a 19-fold year-over-year increase in second-quarter operating profit, driven by its dominance in DRAM and NAND flash markets. The company holds a 38% share in DRAM and 29% in NAND, per Counterpoint Research.
Despite beating analyst expectations, Samsung’s stock fell 20% since its July 7 preliminary report. Memory prices surged 44% for DRAM and 53% for NAND sequentially in Q2, down from mid-60% and mid-70% growth in Q1, according to Citi Research.
The decline has raised concerns about Micron Technology (MU), as investors anticipate weaker memory sector performance ahead.