Business & Finance
Samsung Results Trigger Stock Rotation to Less Loved Sectors
Key Points
Samsung Results Trigger Stock Rotation to Less Loved Sectors Asian tech stocks slumped as investors used Samsung Electronics Co.’s results to lock in profits on a stellar year-to-date chip rally, rotating into unloved sectors with cheaper valuations less prone to earnings shocks. Quarterly profit at the world’s largest memory chipmaker surged 19-fold on booming AI demand, but was just 6% above analyst estimates. Its shares slid as much as 7.9% in Seoul, dragging down peers including South...
Samsung Results Trigger Stock Rotation to Less Loved Sectors
Asian tech stocks slumped as investors used Samsung Electronics Co.’s results to lock in profits on a stellar year-to-date chip rally, rotating into unloved sectors with cheaper valuations less prone to earnings shocks.
Quarterly profit at the world’s largest memory chipmaker surged 19-fold on booming AI demand, but was just 6% above analyst estimates. Its shares slid as much as 7.9% in Seoul, dragging down peers including South Korea’s SK Hynix Inc. and Japan’s Kioxia Holdings Corp. An MSCI Inc. gauge of technology stocks dropped as much as 2.7% while financial and consumer shares rose.