On October 29, spurred by the burgeoning demand for artificial intelligence infrastructure and the upward trajectory of memory chip prices, Samsung Electronics revised its spending plans upwards. However, the profits generated by its chip division fell short of investor anticipations. Samsung now projects its capital expenditure to hit KRW 84.4 trillion (roughly equivalent to USD 63 billion) for the current year, marking a year-on-year surge of approximately 60%. Earlier, its semiconductor division witnessed a staggering 15-fold increase in operating profit, reaching KRW 106.5 trillion in the three-month period ending in September. This figure, though impressive, fell marginally short of analysts' forecasts of KRW 108.5 trillion. The conglomerate's overall net profit experienced a 39% uptick. On Thursday morning, Samsung's stock price dipped by as much as 5% in Seoul. Failing to meet profit expectations could intensify the pressure on Samsung to showcase tangible progress in cutting-edge memory technologies, such as HBM4, especially as it grapples with fierce competition from SK Hynix. Investors are keen to witness enhanced profitability, a refined product portfolio, and enduring customer commitments.
