Samsung Electronics forecasts a 19-fold increase in second-quarter operating profit. Surging demand for memory chips in the artificial intelligence sector drives this growth.
Samsung shares plunged nearly 10% in Tuesday trading despite beating analyst estimates. This decline led a broader selloff in Asian technology stocks and weighed on South Korea's KOSPI index.
Investors fear the AI-driven memory chip boom is approaching its peak. Analysts suggest the market already priced in these results and cite concerns over slowing AI infrastructure spending.
The selloff impacted rival SK Hynix and U.S.-based Micron Technology. These movements indicate a sector-wide reassessment of the semiconductor market.
Oil prices rose following attacks on commercial ships in the Persian Gulf. The incidents involved a natural gas carrier and other vessels near the Strait of Hormuz. These events reignited supply concerns and threatened the ceasefire agreement between the U.S. and Iran.