Samsung Shares Drop 8% After Earnings Miss AI Bar, Dragging Chip Stocks Lower

According to CNBC, Samsung Electronics shares dropped 8% on Tuesday after its quarterly profit missed Wall Street's AI demand expectations, despite earnings surpassing both Nvidia and Apple and the company guiding for a 1,800% jump in operating profit. The selloff spread across the semiconductor sector, with South Korea's Kospi index falling about 5%, SK Hynix dropping 7% ahead of its Nasdaq listing, and U.S. chipmakers including Micron, Intel, and Applied Materials each declining 5–8%. The iShares Semiconductor ETF fell roughly 5%. The market reaction reflects growing investor concerns that skyrocketing memory chip costs are outpacing AI spending demand, forcing companies like Apple and Microsoft to raise consumer product prices.
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