XLK•Shares of Seagate fell 3%, Western Digital declined 2.8% and Sandisk slid 2.9% premarket after Samsung's third-quarter outlook lagged SK Hynix's. Samsung's profit jumped nearly ninefold on robust AI-chip demand, but investors were disappointed by the lack of new shareholder-return plans.
Seagate Technology fell 3%, Western Digital dropped 2.8% and Sandisk slid 2.9% premarket after Samsung Electronics reported third-quarter results. Samsung's profit jumped nearly ninefold on robust AI-chip demand, but its outlook lagged SK Hynix's and it offered no fresh shareholder-return plans.
The industry has drawn scrutiny in recent weeks over concerns about the sustainability of AI spending. As of the prior close, Seagate and Western Digital shares had more than doubled year to date, while Sandisk shares were up about fivefold.
