Investing.com — Micron Technology () shares dropped 4.9% in premarket trading Tuesday, following sharp declines in South Korean memory chipmakers Samsung Electronics and . shares were down 4.7% as well.
The move lower came after Samsung Electronics () reported its second-quarter earnings forecast, which showed a 19-fold jump in operating profit from a year earlier but appeared to weigh on the broader memory chip sector.
Samsung estimated April-June operating profit at 89.4 trillion won ($58.44 billion), up from 4.7 trillion won a year earlier. The figure beat an LSEG SmartEstimate of 87.3 trillion won. Revenue was forecast to rise 129% YoY to 171 trillion won, according to a regulatory filing.
Despite Samsung’s strong profit growth driven by AI-fueled demand for memory chips, shares of Samsung and SK Hynix fell sharply, pulling down Micron in sympathy trading.
Samsung, the world’s largest memory chipmaker, is expected to release detailed results, including a breakdown of earnings for each business division, later this month.
The decline in Micron shares reflects the broader pressure on memory chip stocks following the South Korean companies’ market performance.
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