Semiconductor stocks slide despite Samsung forecasting profit boost from AI

Business Jul 08, 2026

Semiconductor stocks took a hit on Tuesday (Micron dropped over 7%, and Intel nearly 8%) even though Samsung predicted a huge boost in profits thanks to AI demand.
Interestingly, Samsung's own shares also slid almost 7%, suggesting that investors are worried the big run-up in AI chip stocks might be losing steam.

DeepSeek competition adds to selloff worries

The selloff spread across the sector: Marvell Technology fell 4.5%, and South Korea's KOSPI index (which includes big names like SK Hynix) was down nearly 5%.
Trading was so volatile that circuit breakers kicked in.
On top of that, news about new competition from Chinese startup DeepSeek making its own AI chips added to worries that the days of easy gains for chip companies could be coming to an end.