2024 will go down as a tough year for Samsung in recent times. Several unfavorable events have occurred at the Korean behemoth, including its stock plummeting to a four-year low and poor yield results from its semiconductor business. To make matters worse, Samsung has lost some ground in the foldable market, thanks to mounting competition. It appears 2025 won’t bring much luck as market analysts project lower operating profit for the tech biggie.
Analysts predict Samsung’s operating profit could decline by around 36 percent
Analysts have been revising their outlook for Samsung Electronics, trimming their earnings forecast for 2025. What was once a rosy picture has now taken a turn for the worse, with the company’s estimated operating profit for 2025 dropping significantly. According to market tracker FnGuide (via The Chosun Daily), the new estimate stands at 40.48 trillion won (28 billion USD). This is a steep 36.3% cut from the forecast made back in August.
It’s clear that Samsung’s financial prospects have taken a hit, and the company now finds itself in a tougher spot than expected. The sharp downward revision underscores the challenges ahead, as analysts appear to be bracing for stormy weather in the tech sector.
Samsung should go all in on AI to secure a future for itself
Samsung needs to make significant progress in AI chips, especially in high-bandwidth memory (HBM), to turn its fortunes around. It also needs policy support, like the K-Chips Act, which would exempt semiconductor R&D workers from South Korea’s 52-hour workweek limit. However, the bill is still stuck in the legislative process.
Meanwhile, Samsung faces tough competition from Chinese companies like CXMT, which is underpricing its DRAM chips. If these weren’t enough, Samsung is also facing external risks, especially the possible protectionist tariffs under the upcoming Trump administration.
Delays in supplying HBM3E chips to Nvidia are another setback. The K-Chips Act is still stalled. While it would help a small group of Samsung’s R&D staff, it’s unclear when it will pass.
