Samsung shares tumble despite AI-driven profit surge

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Samsung shares tumble

Highlights

Samsung fell 9.67% to 287,250 won.
Operating profit is expected at 89.4 trillion won.
Revenue is forecast to rise 129% to 171 trillion won.
The selloff spread to Asian chip and memory stocks.

Samsung shares fell 9.67% during Asian trading and traded at 287,250 won. The decline came even after the company forecast a sharp rise in quarterly profit, helped by strong demand for memory chips used in artificial intelligence infrastructure, Bloomberg reported.

Profit surge fails to satisfy investors

Samsung forecast an operating profit of 89.4 trillion won, or $58.44 billion, for the April-June quarter, above the 87.3 trillion won LSEG SmartEstimate. A year earlier, the company reported a profit of 4.7 trillion won. Revenue is expected to rise 129% from a year earlier to 171 trillion won.

The numbers underline how sharply the memory cycle has turned in Samsung’s favor. Demand for chips used in AI servers has lifted prices for memory products and improved profitability across the sector. But the result was not enough to satisfy investors after Samsung’s shares more than doubled this year.

The reaction spread across the sector. SK Hynix and Japan’s Kioxia also declined, while Asian technology indexes fell as investors rotated out of crowded chip trades. Memory and storage stocks had been among the strongest performers of 2026, fueled by expectations that AI demand would support a longer cycle for DRAM, NAND, and high-bandwidth memory.

Rotation hits Asian tech

The selloff was not limited to Samsung. South Korea’s broader market also weakened as heavy exposure to Samsung and SK Hynix magnified the pressure. The Kospi had been one of the strongest global equity benchmarks this year, but its reliance on a narrow group of chip leaders has made it vulnerable to sudden reversals in AI sentiment.

Investors also moved into less crowded areas of the market. Financial, communications, health-care and consumer shares gained ground while tech hardware underperformed. That rotation suggests some funds are looking for sectors with lower valuations and less exposure to earnings surprises after months of AI-driven gains.

The shift does not mean investors have abandoned the semiconductor story. It shows that the bar for earnings has moved higher. Strong profit growth may no longer be enough when valuations already reflect expectations for a sustained AI supercycle.

The AI trade faces a higher bar

Samsung’s drop does not mean the AI memory cycle is over. Demand for advanced chips remains strong, and higher memory prices continue to support earnings across the sector. But the market reaction shows that investors now need more than rapid profit growth to keep buying.

The issue is valuation and timing. After a steep rally, chip stocks are being judged against expectations of a sustained AI supercycle, not just one strong quarter. If future earnings or guidance suggest a slower path, investors may continue shifting money into sectors that have lagged behind the technology surge.

As we previously reported, Samsung and SK Hynix plan massive AI chip investments in South Korea.

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