Tech stocks lost momentum on Tuesday as investors took profits in semiconductor names following a record quarter for Samsung (005930.KS).
Shares in the memory chip giant fell by nearly 7% in Seoul after it delivered a 19-fold jump in operating profit. Despite Samsung’s impressive results, the run-up in its profits and stock this year led to selling pressure as investors wondered whether the company could maintain such a high level of growth.
At the same time, Reuters reported Tuesday that China’s DeepSeek is developing its own artificial intelligence chip, which put pressure on Nvidia (NVDA) shares.
The chip trade will likely get another catalyst this week, as Samsung rival SK Hynix (000660.KS) is scheduled to begin selling American depositary receipts (ADRs) soon, launching a US listing for the world’s top supplier of high-bandwidth memory.
In other notable movers, SpaceX (SPCX) stock dipped at the open after joining the Nasdaq-100 index. SpaceX’s fast-tracked inclusion in the index required mutual funds and exchange-traded funds that track it, such as Invesco’s QQQ (QQQ), to buy the stock.