Semtech, Power Integrations, Amkor, Entegris, and Kulicke and Soffa all fell sharply in morning trading after Samsung Electronics' record quarterly profit triggered a sell-the-news reaction, compounded by a Reuters report that China's DeepSeek is developing its own AI inference chip. Samsung's preliminary second-quarter operating profit of 89.4 trillion won surged 1,810% year-over-year, with revenue up 129% to 171 trillion won, beating consensus, but memory stocks had run up so much ahead of the report that the blowout gave holders reason to lock in gains. The DeepSeek chip revived structural fears that custom silicon erodes Nvidia's moat, adding to a pattern of AI labs designing around Nvidia over time. Morgan Stanley had earlier told clients the rally was nearing its end and expected more capex discipline, while risks include SK Hynix's roughly 28 billion dollar Nasdaq debut potentially pulling institutional capital from Micron and related peers. Among the impacted stocks, Semtech fell 9.1%, Power Integrations fell 9.2%, Amkor fell 9%, Entegris fell 9.9%, and Kulicke and Soffa fell 9.7%.
SK Hynix Inc
Amkor Technology Inc
Entegris Inc
Kulicke and Soffa Industries Inc
Micron Technology Inc
Power Integrations Inc
Semtech Corporation
Samsung Electronics Co Ltd
Broadcom Inc
NVIDIA Corporation
Morgan Stanley