Chip Earnings Expectations Miss
Semiconductor manufacturers missing elevated investor expectations despite strong absolute earnings growth triggers profit-taking
Too little corroboration in the last 3 days to call a trend (9 articles). Watching for it to gain traction.
Mainstream financial press is carrying this — attention has broadened beyond specialist outlets.
"Advanced Micro Devices shares fell 9.2% despite forecasting quarterly revenue above estimates, as investors sought a stronger outlook following the stock's 142% surge this year"
"SK Hynix generated a sixfold rise in profit, but still missed forecasts, while Samsung reported a 250-fold rise in chip profits only to see its shares slip. This comes as the two tech giants released second-quarter earnings that were extraordinary - just not extraordinary enough."
"Semiconductor sector, including SOXL and MU, shows classic topping patterns with steep declines despite record earnings, raising valuation concerns."
"Tesla Inc. (NASDAQ:TSLA) shares dipped more than 12% on Thursday after the company reported mixed second-quarter financial results. Tesla reported second-quarter revenue of $28.24 billion. The total beat a Street consensus estimate of $25.71 billion, according to data from Benzinga Pro. Second-quarter earnings of 33 cents per share missed a Street consensus estimate of 50 cents per share."
"When stocks rally sharply ahead of earnings, it makes it more difficult for them to run in response to earnings. The numbers are going to be really good, but the stocks are also priced for perfection."
"This market dynamic unfolded even as TSMC reported a 77% surge in quarterly profits, illustrating the sector's lofty expectations."
"The weakness in chips persisted even after TSMC posted an impressive 77% increase in quarterly profits, indicating high expectations for this sector which has risen nearly 70% this year."
"Samsung Electronics said it expects to say its operating profit surged roughly 1,800% from a year earlier. AI stocks are seesawing lower Tuesday and weighing on Wall Street."
"Samsung's operating profit jump of 19x from last year, as part of its preliminary update for the quarter, was only 6% higher than analyst expectations. Investors chose to take profits from both the Korean chip giants amidst higher expectations."