Micron shares fall about 3.5% after Samsung results weigh on memory stocks
Key Facts
Micron shares fell about 3.5% on October 29, alongside declines of about 2.71% for SanDisk and about 1% for SK Hynix, after Samsung reported its third-quarter results. The negative surprise was concentrated in net profit, which came in below analysts’ average estimate, while the company posted record revenue and operating profit. Samsung said consolidated revenue reached 195.3 trillion won, up 14% quarter on quarter, and operating profit reached 107.4 trillion won. The results show a mixed performance at South Korea’s largest memory chipmaker: strong operating growth alongside net profit that missed expectations. In its coverage published on October 29, Invezz also noted that weaker-than-expected results from Alphabet weighed on technology stocks and raised concerns about the cost of AI infrastructure.
Yonhap reported that Samsung’s net profit came in below analysts’ average estimate, while the company’s official statement reported revenue and operating profit but did not include net profit. As a result, comparing results with expectations does not capture all the operating performance metrics the company reported: revenue hit a record and rose quarter on quarter. Operating profit also reached a record, while a Reuters report said it had risen from 12.2 trillion won in the third quarter of 2025. Reuters reported that operating profit was in line with Samsung’s earlier estimate. This brought together strong annual growth in operating profit and net profit that missed the average forecast.
Samsung said its memory business posted its highest quarterly revenue and operating profit on record, amid capacity constraints and rising market prices across applications. The company attributed the strong performance to resilient server demand and continued demand tied to AI applications. It added that strong server demand had lifted market prices across applications. Samsung also said its memory business expanded sales of next-generation high-bandwidth memory and responded to demand for server solid-state drives. These factors put the decline in memory stocks in the context of a market where Samsung describes demand as strong and production supply as constrained.
Samsung’s announcement came a day after SK Hynix reported record quarterly earnings, according to the Associated Press, in a market where the two Korean companies together dominate about two-thirds of the global memory market. Reuters quoted an analyst at BNK Investment & Securities as saying that SK Hynix’s results exceeded expectations, while Samsung had not materially changed its previous guidance. In Seoul, Samsung shares fell more than 4% after the results, according to Investing.com. In U.S. premarket trading, Micron and SanDisk shares each fell about 2.6%, while SK Hynix shares declined about 1.9%. These figures differ from the declines reported by Invezz in its coverage published the same day, which recorded falls of about 3.5%, 2.71% and 1%, respectively.
Near-term attention is turning to SanDisk’s fiscal first-quarter 2027 earnings call, which the company scheduled for October 29, 2026, at 1:30 p.m. Pacific time. For its fourth-quarter 2026 outlook, Samsung said competition for leadership in AI would continue to drive investment in AI infrastructure. It expected demand growth to center on new processor platform products, with rising demand for quad-level cell solid-state drives. The company estimated its 2026 capital expenditure at about 84.4 trillion won, including 76.8 trillion won for its Device Solutions division. The Associated Press also said Samsung expects demand for AI chips to accelerate through 2027, outpacing supply as customers expand AI infrastructure.