Evening digest: Samsung hits chip stocks, oil jumps on Hormuz tensions

US markets saw a mix of sector-specific and geopolitical developments on Tuesday, with Samsung's earnings causing a sharp selloff in memory-chip stocks that weighed on SanDisk and other memory names.

Gold prices slipped as investors weighed Middle East tensions against expectations for Federal Reserve policy.

Oil prices climbed after reports of attacks on vessels near the Strait of Hormuz reignited supply concerns.

Meanwhile, SpaceX shares declined despite joining the Nasdaq index, even as Raymond James argued the stock remains undervalued over the long term.

Samsung earnings fail to stop memory-chip selloff

Samsung Electronics reported preliminary second-quarter operating profit of 89.4 trillion won ($58.44 billion), representing a 19-fold increase from a year earlier, while forecasting revenue of 171 trillion won, up 129% year over year.

Despite the record outlook, Samsung shares fell nearly 7% as investors questioned whether the strong results had already been priced into the stock.

The company has benefited from surging demand for high-bandwidth memory (HBM) used in artificial intelligence data centres, alongside tighter supply in conventional DRAM and NAND memory markets.

Samsung has also begun commercial shipments of HBM4, making the second quarter the first period in which the latest AI memory products could contribute to revenue.

The weakness quickly spread across global semiconductor markets.

SanDisk shares fell 10% after losing more than 20% over the previous three trading sessions, while Micron Technology and Western Digital declined 7.3% and 8.14%, respectively. The Roundhill Memory ETF dropped 6.2%, while Intel, Advanced Micro Devices and Nvidia also traded lower.

Gold slips as Fed outlook offsets geopolitical concerns

Gold prices declined on Tuesday as investors balanced rising geopolitical risks in the Middle East against expectations that US interest rates could remain elevated for longer.

Spot gold fell 1.5% to $4,098.91 per ounce, while August gold futures settled 1.05% lower at $4,123.60.

The precious metal had reached a two-week high on Monday after weaker-than-expected US jobs data reduced expectations of an immediate Federal Reserve rate increase.

However, markets have since refocused on inflation risks and upcoming Fed communications.

Investors are now awaiting the minutes from the Federal Reserve's latest policy meeting on Wednesday.

Oil climbs after Strait of Hormuz attacks revive supply fears

Oil prices rose more than 2% after reports that vessels near the Strait of Hormuz had come under attack, raising concerns about potential disruptions to one of the world's most important energy shipping routes.

Brent crude rose 5% to $75.65 a barrel, while US West Texas Intermediate gained 5% to $71.99.

According to reports, a Qatari LNG tanker and a Saudi-flagged crude oil tanker were damaged after Iran's Revolutionary Guards reportedly fired missiles in the area. Qatar said Iran bears legal responsibility for the attack.

Analysts said the attacks renewed concerns over energy exports through the waterway, which previously handled roughly one-fifth of global oil and LNG supplies before the Iran conflict began.

At the same time, Societe Generale lowered its long-term oil price forecasts, arguing that stronger supply growth could push the market into surplus during late 2026 and 2027 despite near-term geopolitical volatility.

SpaceX falls despite Nasdaq inclusion as analysts stay bullish

SpaceX shares fell 6% on Tuesday even as the company officially joined the Nasdaq index, extending the post-IPO volatility that has followed its June public listing.

Despite the decline, Raymond James analyst Brian Gesuale argued that the stock remains undervalued and assigned a long-term price target of $800, implying roughly 430% upside from current levels.

The bullish view is centred on Starship, which Gesuale described as a transformative platform capable of dramatically reducing launch costs while expanding commercial opportunities across the space economy.

The analyst also pointed to artificial intelligence as another major growth driver, arguing that SpaceX's satellite infrastructure could eventually support lower-cost AI computing and data services.

Raymond James said the combination of Starship's commercial potential and AI infrastructure positions SpaceX as more than a traditional aerospace company, comparing its long-term significance to foundational infrastructure such as railroads and the internet.

According to LSEG data, more than two-thirds of analysts covering the company currently maintain Buy or equivalent ratings, reflecting continued confidence despite recent post-IPO weakness.