Samsung Electronics Faces 32% Market Value Decline

Samsung Electronics, once poised to capitalize on the AI boom with rising profits and stock prices, has seen a dramatic decline, losing $122 billion in market value or 32% since July. The company's struggles are attributed to lagging performance in critical areas like AI memory, where it is falling behind competitor SK Hynix, and outsourced chip manufacturing, where Taiwan Semiconductor Manufacturing Co. (TSMC) remains dominant. Investor confidence has sharply waned, with about $10.7 billion in shares sold off since the end of July, prompting major portfolio managers to halve their positions in the company. Samsung's recent acknowledgment of delays in high-bandwidth memory chip development has compounded investor concerns, leading to an apology from the company for disappointing results. As foreign investment pulls back, the tech landscape increasingly rewards those with a technological edge, exemplified by the contrasting fortunes of companies like Nvidia and TSMC. Samsung's leadership is now under pressure to execute a successful overhaul to regain its competitive stance in the market.