GoKawiilInvestors dumped semiconductor stocks on Tuesday after results from Samsung Electronics failed to meet Wall Street's lofty artificial intelligence demand expectations.
Shares dropped 8% even after the South Korean electronics company's quarterly profit surpassed both Nvidia and Apple , and the company said it expects operating profit to jump $1,800%.
The results are the latest sign on Wall Street that sometimes beating results isn't enough to please investors in the AI revolution. Previously, this market phenomenon has contributed to post-earnings declines for Nvidia and major cybersecurity stocks such as CrowdStrike and Palo Alto Networks.
Korea-listed shares of South Korea's Kospi fell about 5% in sympathy with Samsung. SK Hynix, which is slated to list shares on the Nasdaq this Friday, dropped about 7%. The company plans to raise $28 billion in the second-largest sale after SpaceX .
Tuesday's selloff could also stem from a recalibration in expectations after memory's historic run, or investors readying for SK Hynix's listing this week.