Jenith
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Investors haven't been too bullish on Samsung Electronics' stock for quite some time now as the company faces significant challenges on several fronts, particularly for its lucrative semiconductor division.
That has resulted in a sustained pressure on the company's stock price and consequently, the considerable decline of its market cap, which now sits at a 9-year low.
As of last week, Samsung Electronics' market cap hit 345.1 trillion won or $252, a 9-year low. It remains one of the most influential companies on the country's stock exchange, accounting for nearly 14% of the KOSPI's entire market cap.
Market analyst highlighted continued challenges in the semiconductor industry. Samsung's weaknesses in the sector have meant that its foundry hasn't been able to secure enough chipmaking orders, and the lack of confidence from chip designers could hurt future prospects.
The company has also struggled to gain a dominating position in the lucrative high-bandwidth memory segment which is heating up due to the insatiable demand for AI chips. Its cross-town rival SK Hynix has fully capitalized on the opportunity, and its market cap is up sharply, hitting nearly 50% of that of Samsung, a significant increase from earlier this year when this figure was below 40%.
As of today, Samsung Electronics' stock is down almost 27% over the past twelve months, While SK Hynix's stock has risen by over 11% during the same period. Investors may pile into Samsung Electronics' stock if the average selling prices for memory chips increase and the company is able to make meaningful improvements in its HBM market share.
The post Samsung Electronics market cap now at a 9-year low appeared first on imeisource.
That has resulted in a sustained pressure on the company's stock price and consequently, the considerable decline of its market cap, which now sits at a 9-year low.
It's not been a good year for investors in Samsung Electronics
As of last week, Samsung Electronics' market cap hit 345.1 trillion won or $252, a 9-year low. It remains one of the most influential companies on the country's stock exchange, accounting for nearly 14% of the KOSPI's entire market cap.
Market analyst highlighted continued challenges in the semiconductor industry. Samsung's weaknesses in the sector have meant that its foundry hasn't been able to secure enough chipmaking orders, and the lack of confidence from chip designers could hurt future prospects.
The company has also struggled to gain a dominating position in the lucrative high-bandwidth memory segment which is heating up due to the insatiable demand for AI chips. Its cross-town rival SK Hynix has fully capitalized on the opportunity, and its market cap is up sharply, hitting nearly 50% of that of Samsung, a significant increase from earlier this year when this figure was below 40%.
As of today, Samsung Electronics' stock is down almost 27% over the past twelve months, While SK Hynix's stock has risen by over 11% during the same period. Investors may pile into Samsung Electronics' stock if the average selling prices for memory chips increase and the company is able to make meaningful improvements in its HBM market share.
The post Samsung Electronics market cap now at a 9-year low appeared first on imeisource.