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Samsung Electronics’s stock price has dropped to its lowest point in more than four years, and extended declines entered their fourth straight session on Wednesday.
This comes simultaneously with growing uncertainty over potential tariffs imposed under the upcoming Donald Trump administration.
The South Korean-based company saw its shares fall to 51,700 won, the lowest they have been since June 24, 2020. This puts the company down 35% year-to-date, which could be its worst annual performance in more than two decades.
At the same time, the US chipmaker Nvidia is seeing huge success with its shares.
It’s thought that Samsung Electronics hasn’t tapped into the booming demand for artificial intelligence chips as well as its rivals, like its local competitor SK Hynix who has also seen growing success this year.
Amazon is the latest company that is seeking to bring its own chips to the AI chip space to compete with the likes of Nvidia, as companies are turning their attention to this market.
Samsung Electronics issues apology and says it’ll overcome the crisis
Last month, in October, the technology giant issued an apology to its customers, investors, and employees as it said its results did not meet the expectations of the market.
This was after it said it expected to post $6.78 billion in operating profit for the quarter, which was around $900 million sort of expectations from analysts.
The Vice Chairman of Samsung Electronics DS Division, Jeon Young-hyun, shared the note in the company’s online newsroom. He noted talks of a Samsung crisis and said this responsibility lies “with us who are leading the business.”
Young-hyun described the situation as being “severe” and said the company “will restore the fundamental competitiveness of technology” as well as prepare for “the future more thoroughly.”
The company said they would look at the “organizational culture and working method again and fix it right away” which was reported as later influencing a six-day workweek for executives.
Now with Donald Trump declared the winner of the 2024 US Election, it’s not yet known the full scope of what could be seen with tariffs in the future.
He has threatened to impose a universal 10% tariff on imports and 60% on Chinese goods, but more information can be expected when he comes into office.
Featured Image: AI-generated via Ideogram
