Samsung Stock Fell Despite a 19x Profit Jump. Here's What That Means for Micron Investors

Samsung is 1 of the astir important representation manufacturers successful the world, arsenic evidenced by its marketplace stock successful the dynamic random-access representation (DRAM) and NAND flash retention markets.

Counterpoint Research notes that Samsung dominates some these representation niches. It is the apical vendor of NAND flash memory, with a marketplace stock of 29%, and enjoys a akin presumption successful the planetary DRAM market, with a 38% share. This monolithic dominance translated into a phenomenal 19x year-over-year summation successful Samsung's second-quarter operating nett erstwhile it released its preliminary study past week.

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However, Samsung banal has dropped 20% since releasing its preliminary study connected July 7. What's more, Samsung's pullback has besides created concerns astir the prospects of high-flying chipmaker Micron Technology (NASDAQ: MU). Let's spot wherefore that has been the case.

Samsung's results bespeak that investors are expecting bigger beats from representation manufacturers

Though Samsung's income much than doubled twelvemonth implicit twelvemonth and its operating nett was higher than analysts' expectations, it looks similar the marketplace was expecting a bigger jump. Additionally, analysts are expecting a gradual slowdown successful representation terms growth. According to Citi Research, the terms of DRAM and NAND flash jumped by 44% and 53%, respectively, connected a sequential ground successful Q2.

For comparison, the sequential terms maturation was overmuch stronger successful Q1, with DRAM mean selling terms (ASP) rising successful the mid-60% scope and NAND flash ASP expanding successful the mid-70% range, according to SK Hynix. This slower summation successful representation prices past 4th is the crushed wherefore Samsung's net bushed wasn't bigger, and that's atrocious quality for Micron investors.

Micron banal has slipped 19% from the 52-week precocious it reached past month. Even grounds results for the 3rd 4th of fiscal 2026 (which ended May 28), which Micron released connected June 24, haven't been capable to apprehension the stock's slide. What's worthy noting is that Micron's net jumped by a whopping 13x twelvemonth implicit twelvemonth successful the erstwhile 4th to $25.11 per share.

Its guidance of $31.00 successful net per stock for the existent 4th points to a imaginable year-over-year leap of much than 10x. That would correspond a smaller summation from the net maturation Micron reported past quarter, but it is inactive phenomenal. Clearly, Micron's show is coagulated capable to warrant further upside successful its banal price. However, that hasn't been the lawsuit recently, which is wherefore investors whitethorn beryllium wondering whether they should commencement booking profits.