Cautious Outlook for Samsung
After Samsung’s announcements, shares in competitor SK Hynix fell by 4.6%, thought to be brought on by fears of possible HBM chip oversupply.
While the AI sector is thriving, the broader semiconductor market remains slow, with Samsung aiming to offset slowing demand for traditional chips with sales of AI-optimized, high-bandwidth memory products.
Though the company’s $6.6 billion operating profit slightly surpassed earlier estimates, it still missed market expectations. This led to recent apologies for its underwhelming earnings, attributing the slowdown to delays in advanced chip sales and increased competition from Chinese firms supplying traditional chips.
“It’s anticipated that it will take some time before the business performs as expected.” Baik Gil-hyun, analyst at Yuanta Securities.
