Micron Shares Fall 2.6% as Samsung Earnings Miss Forecasts Despite Record Chip Profits

Micron Technology (NASDAQ:MU) shares declined 2.6% after Samsung Electronics (USOTC:SSNHZ) reported fourth-quarter earnings below analysts’ expectations, despite recording its fourth consecutive quarter of record profits.

Samsung shares fell more than 4% in Seoul following the announcement, while other memory-chip companies also declined in U.S. premarket trading.

The South Korean semiconductor manufacturer reported higher revenue and operating profit, supported by demand for chips used in artificial intelligence applications.

Samsung Reports Net Profit Below Estimates

Samsung Electronics reported fourth-quarter net profit of 75.136 trillion won, compared with the FactSet consensus estimate of 86.13 trillion won.

The result fell short of analysts’ expectations despite marking the company’s fourth consecutive quarter of record earnings.

Quarterly revenue more than doubled from the previous year to a record 195.253 trillion won.

Operating profit increased nearly ninefold to 107.441 trillion won, reflecting higher semiconductor earnings associated with AI-related demand.

Samsung’s chip-making division generated approximately 106.5 trillion won in operating profit, accounting for most of the company’s consolidated operating income.

Micron, SanDisk and SK Hynix Shares Decline

Micron shares fell 2.6% following Samsung’s earnings announcement, while SanDisk also declined 2.6% in U.S. premarket trading.

SK Hynix shares dropped 1.9% during the same period.

Samsung’s stock decreased more than 4% in Seoul as investors assessed the difference between its reported results and market expectations.

Concerns about future spending on artificial intelligence infrastructure and the absence of additional details about shareholder returns were also cited as factors affecting Samsung’s share price.

The declines across memory-chip companies followed a period of increased demand for semiconductors used in AI computing systems.

Samsung Expects Memory Supply Constraints to Continue

Samsung reiterated its expectation that memory-chip supply will remain constrained over the next several years.

The company indicated that limited supply could keep semiconductor prices elevated as demand for AI-related memory products continues.

Samsung also expects earnings associated with AI-chip demand to remain a contributor to its financial performance through next year.

Sales of its higher-end HBM4 memory products are projected to increase significantly as the company expands its offering for advanced computing applications.

Long-Term Supply Contracts and Capital Spending Plans

Samsung expects multiyear supply agreements to account for approximately 60% to 70% of its projected production capacity by 2030.

The company also outlined capital expenditure expectations of 84.4 trillion won for 2026.

Of that amount, 76.8 trillion won is allocated to its semiconductor division, representing the majority of planned investment.

The spending reflects Samsung’s plans to develop and expand its chip manufacturing operations, including capacity supporting advanced memory products.

Despite reporting record quarterly revenue and operating profit, Samsung’s earnings shortfall was accompanied by share price declines across several semiconductor companies, including Micron, SanDisk and SK Hynix.

Micron Technology stock price

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