Samsung, SK Hynix and SanDisk slide as investors pull back in July

Samsung, SK Hynix and SanDisk all dropped sharply in early July despite record‑level AI memory profits, as foreign investors sold millions of shares across six consecutive sessions [1].

Samsung’s mixed signal

Samsung Electronics reported a preliminary Q2 operating profit of 89.4 trillion won – roughly 19 times its 2025 level – confirming the AI‑driven demand surge [1]. Yet the stock fell almost 7% to 296,000 won, testing the 286,000 won support level. The decline coincided with six straight days of foreign selling, totaling about 26 million shares, led by JPMorgan, Morgan Stanley and UBS [1]. Institutional outflows are reflected in a negative Chaikin Money Flow of –0.07, while the Money Flow Index lingered at 42, below the neutral 50 line, indicating weak retail participation [1]. At a forward P/E of 24, the valuation already assumes strong growth, so any miss could trigger further pressure.

SK Hynix’s profit edge and weakest tape

SK Hynix, the primary supplier of high‑bandwidth memory for Nvidia, secured roughly 70 % of Nvidia’s upcoming HBM4 orders [1]. Its Q2 earnings, due July 29, are expected to show a 61 % return on equity – about three times Samsung’s ROE [1]. Despite this, the share price slid 6.06% to 2,201,000 won, breaching the 2,080,000 won low. Foreign investors have sold around 3.3 million shares over six sessions, and the stock’s Chaikin Money Flow plunged to –0.139, the deepest among the trio [1]. A Money Flow Index of 36 underscores the lack of retail buying. Valuation metrics (P/E ≈ 21, P/B ≈ 9) suggest a higher sensitivity to any earnings slowdown compared with Samsung’s lower multiples.

SanDisk’s rally stalls amid cooling sentiment

SanDisk’s year‑to‑date rally of over 500 % stalled, with the stock slipping 3 % after hours to about $1,690 after a 16 % drop over the prior five days [1]. Analyst upgrades from Goldman Sachs and Bank of America kept buy ratings, but options markets turned cautious: the put‑call ratio rose above 1 on both volume (1.18) and open interest (1.43) [1]. The Chaikin Money Flow turned negative on July 1 and has continued to decline, while sell volume has dominated since June 26. Historically, a negative CMF preceded a modest 14 % bounce, but that rally relied on steady retail buying, which is now absent [1].

What to watch

• Samsung: monitor the 286,000 won support level and the July 30 full‑quarter results release.
• SK Hynix: watch for a break below 2,080,000 won and the July 29 earnings announcement.
• SanDisk: track the put‑call ratio and CMF; a sustained negative CMF could pressure the stock further.

The three AI memory leaders illustrate a classic split: record‑breaking fundamentals are already priced in, while heavy foreign outflows and weak retail demand create a fragile price base ahead of upcoming earnings. The next few weeks will reveal whether the market views the profit surge as sustainable or merely a short‑term catalyst.