Memory stocks plummeted across the board. SanDisk Corp. tumbled over 11%, Western Digital dropped more than 10%, while Micron Technology and Seagate Technology PLC fell over 7%.
The selloff kicked off after a strong report, which showed a 19-fold surge in profit and forecast more earnings growth later this year. Investors nonetheless started selling their Samsung shares, sparking declines among Samsung's suppliers, rival memory-chip makers and other tech sector stalwarts.
The downbeat reaction to Samsung's earnings are being viewed as a sign of tech stock fatigue following a strong run tied to the proliferation of artificial intelligence and heavy investment in AI-related infrastructure.