[Special Report] Micron Earnings Slump Impact... Domestic Semiconductor Stocks Also Plummet

Shares of domestic semiconductor companies are also falling in unison following news that the earnings of U.S. semiconductor company Micron Technology significantly missed market expectations.

As of 10:46 a.m. on the 19th, Samsung Electronics is trading at 53,300 KRW, down 2.91% (1,600 KRW) from the previous close. SK Hynix is down 4.14% (7,600 KRW) compared to the previous trading day, trading at 175,900 KRW. Hanmi Semiconductor is also down 2.53% from the previous close, while DB HiTek and Ligno Industrial are falling by 2.88% and 2.52%, respectively.

This is interpreted as a result of Micron’s earnings falling short of market expectations. U.S. memory semiconductor company Micron Technology announced on the 18th (local time) that it recorded sales of $8.71 billion and earnings per share of $1.79 for the first quarter of fiscal year 2025 (September to November). Both sales and earnings per share exceeded Wall Street estimates compiled by market research firm LSEG, which were $8.68 billion and $1.73, respectively.

Micron forecasted second-quarter (December to February) sales of $7.9 billion and earnings per share excluding certain items of $1.53. The sales figure falls short of Wall Street’s forecast of $8.99 billion, and the earnings per share is significantly below the market expectation of $1.92. Following the second-quarter earnings forecast that missed market expectations, Micron’s stock price dropped more than 13% in after-hours trading.

The outlook for domestic semiconductor stocks is also not very bright. Samsung Electronics, the leading domestic semiconductor stock, is expected to experience poor earnings again in the fourth quarter of this year. For this reason, securities firms have been lowering their target prices for Samsung Electronics one after another. According to FnGuide, among the nine securities firms that issued analysis reports on Samsung Electronics this month, eight have lowered their target prices.