Korean chip stocks flip to losses on lingering AI, memory pricing concerns Shares of South Korean chipmakers Samsung Electronics and SK Hynix fell sharply on Wednesday, reversing earlier gains as investors grappled with concerns over slowing memory price growth and whether earnings have peaked. Samsung’s stock dropped as much as 7.6%, while SK Hynix’s shares fell 5.2% in afternoon trading. Both stocks had initially rebounded, with Samsung rising 1.4% and SK Hynix climbing 5.8%, but the gains faded as investors remained cautious following Samsung’s steep post-earnings decline the previous day. The reversal came amid broader market uncertainty, with U.S. semiconductor stocks also declining overnight. Intel, Micron, and AMD fell 9.7%, 4.7%, and 6.5%, respectively, while the Philadelphia Semiconductor Index dropped 4.7%. The sell-off was triggered by Samsung’s second-quarter preliminary earnings report, which showed a 19-fold jump in quarterly operating profit. However, investors were unimpressed, as the results failed to meet lofty expectations despite strong demand for AI memory chips. Samsung’s shares tumbled 6.9% on the day, sparking a broader retreat from AI-related investments that rippled to Wall Street. Analysts noted that the earnings season is only beginning, and expectations for strong results from chipmakers remain intact. However, they highlighted growing investor focus on signs that memory price growth could slow in the second half of the year. This uncertainty clouds the outlook for further earnings growth, even as memory chip supply is expected to remain tight through the third quarter. Park Yuak, an analyst at Kiwoom Securities, cut his target price for Samsung by 9% to 390,000 won ($257.15), citing rising costs for components like CPUs and package substrates.#sk_hynix #samsung_electronics #intel #philadelphia_semi_index #south_korean_chipmakers
Taiwan Stocks Surge Over 330 Points Despite Wall Street Sell-Off; TSMC Rebounds to NT$2,455 Taiwan's stock market staged a strong rebound on Wednesday, defying a sharp sell-off on Wall Street where the Philadelphia Semiconductor Index plummeted over 4.6% amid concerns about overvalued AI stocks. The Taiex index surged more than 330 points, peaking at 45,814.66, as major electronics and financial stocks rallied. Taiwan Semiconductor Manufacturing Co. (TSMC) led the recovery, rising NT$15 to NT$2,455, while companies like Hon Hai, MediaTek, Delta Electronics, and Yageo also advanced. Financial giants such as Fubon Financial and Cathay Financial contributed to the upward momentum, reflecting resilience in the market despite global headwinds. The rally followed a broader sell-off on Wall Street on Tuesday, July 7, where the Philadelphia Semiconductor Index dropped 4.65% to 12,300.52, driven by fears of stretched valuations in AI-related stocks. However, Taiwan's market demonstrated strength on Wednesday, with the Taiex recovering lost ground after the opening bell. The index reached an intraday high of 45,814.66, surpassing the 45,800-point level. TSMC, often seen as a bellwether for the sector, opened at NT$2,445 and climbed to NT$2,455, reinforcing bullish sentiment. U.S. stock indices closed lower on July 7, with the Dow Jones Industrial Average falling 130.76 points to 52,925.15, the S&P 500 dropping 33.58 points to 7,503.85, and the Nasdaq Composite declining 302.47 points to 25,818.69. The Philadelphia Semiconductor Index fell 599.62 points, a 4.65% decline, exacerbating concerns about tech sector overvaluation.#taiwan_semi_conductor_manufacturing_co #taiwan_stock_market #taiex_index #taiwan_semi_conductor_manufacturing_co_stock #philadelphia_semi_index
