AI Chip Selloff Spreads Across Global Markets | Bloomberg Tech 7/07/2026

Samsung profits disappoint despite record growth

Samsung reported operating profit surged 19-fold year-over-year to approximately $58 billion and revenue more than doubled, yet the stock suffered its biggest decline since 2023 as the results merely met rather than exceeded extreme expectations following a 150% year-to-date rally.

Korean volatility spills into global markets

Leveraged ETFs and crowded positioning in Korean memory giants (Samsung and SK Hynix) caused volatility to spread worldwide, with the Philadelphia Semiconductor Index dropping over 7% as investors question if the cycle is peaking despite tight supply and rising DRAM prices through 2027.

Analysts see maturing AI trade

Strategists note that increased volatility and 'fatigue' around hyperscaler capex signals the AI theme is maturing, with investors becoming more price-sensitive and punishing aggressive capital expenditure ramp-ups even as fundamentals remain technically strong.

South Korea commits $307 billion

South Korea unveiled plans to spend $307 billion on AI data centers and memory chip factories, bringing total tracked sovereign AI spending globally close to 30 gigawatts—representing an estimated $600-900 billion in investment.

Extending the capex cycle beyond hyperscalers

Government spending is expected to drive the 'next leg' of AI infrastructure investment, reducing reliance on U.S. tech giants and providing longer-term demand visibility, though this pressures other regions like Europe to increase their own semiconductor subsidies.

Amazon raises $25 billion for AI buildout

Amazon returned to the bond market seeking at least $25 billion, with Bloomberg Intelligence predicting capital expenditures could top $200 billion this year and approach $300 billion in 2026 as the company front-loads infrastructure purchases while leveraging its strong cash flow and low debt levels.

SpaceX joins Nasdaq 100 with bullish coverage

SpaceX officially entered the Nasdaq 100 index with a weighting of just over 1%, prompting six brokers to initiate coverage with Buy ratings—including a $800 price target from Raymond James expecting 20x revenue growth—as analysts view it as an AI play, not just aerospace.

Index inclusion triggers 'sell the news'

SpaceX shares fell over 5% despite the milestone because index-tracking funds had already pre-positioned for the accelerated inclusion, creating a 'buy the rumor, sell the news' dynamic in the thinly traded stock.