Samsung's profits surged 19x, so why is this bearish news? Samsung expects Q2 revenue to hit 171 trillion KRW, up 129% YoY; operating profit is projected at 89.4 trillion KRW, nearly 19x YoY. But after the announcement, the entire memory sector's stock prices tanked. 1. Expectations were too high. Revenue came in slightly below expectations, and operating profit was slightly above expectations. In the current risk-averse market, you need to massively outperform expectations to avoid a drop. Even Micron's blowout earnings only saw a brief rally before declining. 2. Everyone is derisking ahead of major companies' earnings reports. If Capex investments slow down in those reports, the performance and valuations of the semiconductor sector will take a big hit. In this environment, any news that isn't a clear positive is treated as bearish. Next up is the SK Hynix ADR event. The current weak market sentiment is likely to persist. If the listing generates high interest, it could provide short-term support. But if the weakness continues, we might have to wait for Capex data from the big players to see a reversal. Of course, if the Capex data disappoints, the downtrend will likely continue.