Major hyperscalers including Alphabet, Microsoft, Meta, and Amazon will begin releasing second-quarter earnings reports starting July 22, with market focus intensifying amid AI peak-out concerns that have driven sharp declines in semiconductor stocks. Samsung Electronics and SK Hynix, which hold significant weight in the Korean stock market, fell 4.31% and 4.23% respectively on July 20, while the KOSPI index closed down 4.46% at 6516.27 following a 6.37% plunge on July 16. The semiconductor sector downturn stems from investor fatigue over hyperscalers' astronomical AI infrastructure spending and mounting pressure on these companies to demonstrate revenue generation capabilities commensurate with their massive capital investments. Hana Securities analysis indicates that historical earnings performance from these big tech firms, particularly their capital expenditure guidance, has shown strong correlation with subsequent price movements in Korean semiconductor stocks.
Samsung Electronics and SK Hynix Record Sharp Declines on July 20
According to Korea Exchange data, Samsung Electronics closed at 244,000 won on July 20, down 4.31% from the previous session, while SK Hynix ended at 1,764,000 won, down 4.23%. The KOSPI index closed at 6516.27, down 4.46% from the previous trading day. Trading resumed on July 20 following the Constitution Day holiday closure.
Global Semiconductor Stocks Fall from Peak Levels
As of July 17 (local time), Micron Technology had fallen 32% from its peak, while NVIDIA declined over 14%. TSMC, despite achieving record quarterly net profit in the second quarter of 2026, retreated approximately 16% from its previous high. The declines reflect widespread AI peak-out concerns across global financial markets.
Hyperscaler Earnings Reports Scheduled Between July 22-30
Alphabet will release earnings on July 22, followed by Microsoft and Meta on July 29, and Amazon on July 30. The four major hyperscalers' combined capital expenditure is estimated at $725 billion (approximately 1,000 trillion won) in 2026 and approaching $900 billion (approximately 1,200 trillion won) in 2027. Hana Securities projects the combined CAPEX growth rate for these four companies will rise from 80% in the first quarter of 2026 to 83% in the second quarter and 92% in the third quarter, before moderating slightly to 79% in the fourth quarter.
Historical Correlation Shows Earnings Impact on Korean Semiconductor Stocks
Hana Securities analysis found that since 2025, Alphabet has never reported earnings per share below market expectations. When Alphabet recorded earnings surprises based on revenue, Samsung Electronics and SK Hynix averaged one-month returns of 11% and 17% respectively. When earnings fell short of expectations, average returns were 2% and -3% respectively. Micron Technology and TSMC stock prices showed similar patterns. Lee Jae-man, a Hana Securities researcher, stated that whether Meta and Amazon's EPS exceed or fall short of expectations, and whether Microsoft's CAPEX exceeds or falls short of expectations, affects the stock returns of global semiconductor companies.
FAQ
Q: What were the stock price declines for Samsung Electronics and SK Hynix on July 20?
A: Samsung Electronics fell 4.31% to close at 244,000 won, while SK Hynix declined 4.23% to close at 1,764,000 won on July 20, according to Korea Exchange data.
Q: When are the major hyperscalers scheduled to release their second-quarter earnings?
A: Alphabet will release earnings on July 22, Microsoft and Meta on July 29, and Amazon on July 30.
Q: What is the estimated combined capital expenditure for the four major hyperscalers in 2026?
A: The combined CAPEX for Alphabet, Microsoft, Meta, and Amazon is estimated at $725 billion (approximately 1,000 trillion won) in 2026, according to projections cited in the article.
