What Happened? ISC Q2 Earnings Miss Market Expectations

ISC announced its preliminary Q2 2025 earnings on August 14, 2025. Revenue, operating profit, and net profit all fell short of market consensus, posing a potential short-term negative impact on the stock price.

Why the Underperformance? Slowdown in the General Memory Market

The sluggish performance is linked to the slowdown in the general memory market. However, there are positive aspects. Q2 earnings grew by more than 50% compared to the previous quarter, and the growth of the AI semiconductor market still presents a significant opportunity for ISC.

So, What Should Investors Do? Maintain ‘Buy’ Rating with a Mid-to-Long-Term Perspective

Despite the short-term setback, ISC’s core competitiveness and potential benefits from the AI chip market growth make it an attractive investment in the mid-to-long term. Its dominant market share (90%) in the silicon socket sector and diversification through new business ventures support a positive outlook. The low debt-to-equity ratio (15.67%) also ensures financial stability.

Investor Action Plan: Careful Monitoring and Risk Management are Essential

  • Maintain Buy (Mid-to-Long Term): Considering the AI semiconductor market growth and the potential of new businesses, maintain a buy rating with a mid-to-long-term perspective.
  • Risk Management: Monitor macroeconomic and industry risks, including interest rate fluctuations, exchange rate volatility, and intensified competition in the semiconductor market.
  • Monitor New Businesses: Closely watch for synergy with acquired companies and the materialization of tangible results.
  • Observe Earnings Trends: Check whether the company recovers its growth momentum in the coming quarters.