Samsung Electronics' quarterly profit falls short of expectations, facing challenges in the AI chip business. On Wednesday, January 8, South Korean electronics giant Samsung announced disappointing quarterly results: preliminary data shows that Samsung's operating profit for the fourth quarter of 2024 was 6.5 trillion won (approximately $4.5 billion), lower than the analysts' average expectation of 8.96 trillion won; revenue was 75 trillion won, also below market expectations. As of the time of writing, Samsung's stock in Korea rose by 3.79%, currently reported at 57,500 won per share. Analysts pointed out that the main reasons for Samsung's poor performance include: 1. Lagging in the AI chip sector: Samsung is falling behind competitors like SK Hynix and Micron Technology in the artificial intelligence chip market, failing to obtain certification from NVIDIA in a timely manner, resulting in a reduced market share in high bandwidth memory (HBM); Weak demand for traditional memory: The demand for conventional semiconductor products from PCs and mobile devices has weakened, dragging down Samsung's performance; Increased R&D investment: To catch up with the rapidly growing AI market, Samsung has increased its R&D spending and capacity expansion investments; Intensified competition in the smartphone business: The competition in the mobile device sector is becoming increasingly fierce, affecting Samsung's performance in this business segment; Decline in foundry business utilization: The operational efficiency of the wafer foundry business has decreased. In response to these challenges, Samsung is taking a series of measures: Organizational culture transformation: Jun Young-hyun, head of Samsung's chip division, previously acknowledged delays in obtaining NVIDIA certification, stating that the company needs to review its organizational culture and processes; Layoff plans: Samsung has begun layoffs in Southeast Asia, Australia, and New Zealand, planning to reduce thousands of positions globally; Increased investment in AI chips: Samsung is striving to catch up in the high-end memory market, but this requires sustained high R&D and capacity expansion investments