AI Stocks Fall After Samsung Electronics' Strong Profit Forecast Fails to Impress
Samsung’s profit outlook topped forecasts, but investors still sold AI shares as worries about valuations and returns pushed the Nasdaq lower.
- On Tuesday, Samsung Electronics shares fell 6.9% in Seoul despite forecasting a record 89.4 trillion won operating profit, a 19-fold surge that failed to reassure investors about artificial intelligence sustainability.
- Technology stocks faced broad selling pressure as investors questioned whether artificial intelligence investments will yield sufficient productivity and profit gains to justify the heavy spending on chips and data centers.
- The Nasdaq Composite slipped 0.97% Tuesday as major chipmakers retreated, with Micron Technology falling 7%, Nvidia sinking 1.5%, and Kioxia Holdings shedding 11.3% in the broader semiconductor decline.
- Brent crude futures rose about 1.9% to $73.37 a barrel after the British military reported a tanker was struck by a projectile in the Strait of Hormuz on Tuesday.
- Trump threatened military action on Monday, stating the United States would either reach a deal with Iran or "finish the job," as regional tensions continue pressuring global energy markets.
24 Articles
24 Articles
Samsung Wipes Out AI Stocks. Is This the Buying Opportunity You Were Waiting For?
The AI trade has rewarded investors with extraordinary gains over the past two years, but it has also created a market where sentiment can change in a single trading session. That reality was on full display after Samsung Electronics reported record quarterly results in South Korea. Revenue and operating profit climbed sharply, yet the stock ... Samsung Wipes Out AI Stocks. Is This the Buying Opportunity You Were Waiting For?
Stocks slip; Samsung's record profit revives jitters on AI outlook
The bad mood with the technology sector pushes the Nasdaq and S&P 500 indexes on Tuesday, while Dow Jones advances and tests historical maximums for the third consecutive session. The adjustment of positions in tech assets focuses, above all, on actions of chips and semiconductors, after the strong quarterly results of Samsung are unable to distance the fears of investors about the sustainability of the artificial intelligence rally (AI) and the…
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