Samsung, SK Hynix Shares Fall Ahead of Q3 Earnings

Shares of South Korean chip giants Samsung Electronics and SK Hynix declined on Tuesday as investors turned cautious ahead of their third-quarter earnings reports, despite broader strength across the global semiconductor sector.

Samsung Electronics shares fell about 1.8%, while SK Hynix dropped 3.4%. The declines weighed heavily on South Korea’s benchmark KOSPI index, which slipped more than 1%.

Samsung is expected to release preliminary third-quarter results later this week. Market expectations point to operating profit exceeding 100 trillion won ($74.05 billion), potentially marking the memory chipmaker’s highest profit on record.

SK Hynix is scheduled to report its third-quarter results later in October. The company is also expected to post strong growth following a quarter that included its high-profile American Depository Receipts offering.

Despite expectations for robust earnings, investors remain concerned about several factors that could pressure results. A stronger South Korean won may reduce the value of overseas earnings when converted into local currency. Samsung and SK Hynix could also face higher costs as employees seek larger bonuses following substantial profits generated by the artificial intelligence boom.

Questions surrounding the sustainability of AI-driven semiconductor demand have added to market caution. Reports of delays involving U.S. data center projects in recent months have raised concerns that the rapid expansion of AI infrastructure could lose momentum.

However, recent results from U.S. memory chipmaker Micron Technology provided some reassurance. Micron’s latest earnings indicated that demand linked to artificial intelligence remained strong through at least September, supporting expectations that Samsung and SK Hynix will deliver significant year-over-year growth in the third quarter.

Micron also forecast tight memory chip supplies for at least another year as AI infrastructure continues absorbing available capacity. Continued supply constraints could support memory prices and provide a favorable backdrop for Samsung Electronics and SK Hynix even as investors closely monitor currency movements, labor costs and the outlook for global AI chip demand.