Samsung Electronics reported more than double the operating profit in the fourth quarter compared to the previous year, but the figure fell short of analyst expectations. Concerns arose regarding Samsung's technological competitiveness, particularly in the face of its rival, SK Hynix. The company attributed the decline to cooling demand for computers and smartphones, coupled with increased investments in advanced chip manufacturing capacity. While Samsung faces challenges with oversupply in conventional memory chips, losses at its contract manufacturing arm, and delays in supplying HBM3E chips for Nvidia's AI products, CEO Jensen Huang expressed confidence in Samsung's ability to overcome these hurdles.
Samsung Electronics estimated operating profit more than doubled in the fourth quarter from the previous year, but its numbers on Wednesday fell far short of analyst expectations, fuelling concerns about the South Korean company’s continuing technological weakness. Operating profit at the world’s largest maker of memory chips, smartphones and televisions was estimated at Won6.5tn in preliminary figures for its October-December quarter, missing the Won7.
They will succeed, no question they will succeed,” he added. “Remember Samsung created HBM . . . the very first HBM memory at Nvidia that we used was from Samsung. They will recover, it’s a great company.”Despite disappointing earnings, Samsung shares jumped 2.9 per cent on Wednesday on expectations of chip demand recovery. The shares slumped more than 30 per cent last year, prompting the company to issue a rare apology in October for its poor performance.
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