Samsung Earnings Loom as Chip ETF Sits 10% Below Its June Peak

iShares MSCI Global Semiconductors ETF falls 1.6% to EUR 19.33 as markets await Samsung's preliminary results and weigh AI infrastructure demand.

Investors in the semiconductor space are treading carefully this Wednesday, with the iShares MSCI Global Semiconductors UCITS ETF USD Acc changing hands at EUR 19.33, down 1.6% on the day. The pullback comes as market participants position themselves ahead of Samsung Electronics' preliminary results, due Thursday, which are widely viewed as a key gauge of memory-chip demand and the broader trajectory of the AI cycle.

Korean Chipmakers Under Pressure

Selling pressure already hit Asia's leading chip names during the session. Samsung Electronics slipped 1.29%, while SK hynix fell 2.82%. Analysts attributed the weakness to a mix of profit-taking and caution ahead of the quarterly report, compounded by the expiry of Samsung's regular share buyback support. Foreign investors offloaded Korean equities in size, logging net sales of KRW 2.60 trillion on the KOSPI. The cautious mood spilled over into US names such as Micron and SanDisk, which had already lost ground in the prior session and dampened the positive momentum coming out of Wall Street.

AI Infrastructure Offers a Counterweight

Against the near-term caution in memory, Marvell Technology struck a decidedly more bullish tone at its investor day on Tuesday. The company laid out ambitious long-term targets for custom AI chips and data-center infrastructure, remarks that were well received and lent support to peers including Broadcom. Marvell's confidence underscores the persistent appetite for bespoke semiconductor solutions that extends well beyond demand for graphics processing units.

While the memory market remains subject to cyclical swings, the build-out of AI infrastructure continues to provide a sturdy underpinning for the sector — a critical factor for valuing companies growing beyond the traditional PC and smartphone businesses.

AMD's Supply Plans and Micron's Record Commitments

The optimism has been reinforced by concrete developments on the supply side. AMD CEO Lisa Su announced plans to "significantly increase" chip supply in 2027, according to Reuters, responding to surging demand for AI processors. The company intends to ramp up production of both CPUs and GPUs in close cooperation with its supply-chain partners. Marvell, for its part, raised its revenue forecast, explicitly citing strong demand for data-center semiconductors, and Broadcom advanced alongside the broader sector move.

Fundamental data from the memory segment adds weight to the upbeat narrative. Financial commitments from long-term supply contracts at Micron Technology have climbed to USD 32 billion, a substantial jump from the USD 22 billion reported in June — a clear sign that technology buyers are racing to lock in access to advanced memory solutions. Micron had already reported quarterly results on September 30 that beat analyst expectations, with management stressing that demand for memory and storage solutions remains unabated. Supply conditions are expected to stay tight in fiscal 2027 and 2028, supporting manufacturers' margin expectations and providing a robust valuation base for the ETF, which tracks the leading players across the global semiconductor value chain.

Valuation and the Road Ahead

The combination of strong corporate guidance and a friendlier macroeconomic backdrop has made the sector one of the year's standout performers. The iShares MSCI Global Semiconductors UCITS ETF USD Acc has gained 106% year-to-date, ranking among the top performers of 2025 on the back of a fundamental re-rating across much of the chip industry. Falling US Treasury yields have further bolstered risk appetite.

Even so, investors are watching valuation limits. The ETF closed yesterday at EUR 19.68 and, despite its impressive rally, still trades 8.6% below its 52-week high — a level of EUR 21.52 reached on June 22. With Wednesday's decline, the gap to that peak has widened to roughly 10%.

Long-term growth prospects are underpinned by AMD's capacity plans and Micron's order book, but short-term volatility remains a factor market participants are keeping in view. The next catalysts are likely to come from upcoming quarterly reports by other industry heavyweights and from progress in expanding global manufacturing capacity.