In a surprise announcement, Samsung Electronics revealed that its Q3 2024 earnings are expected to be 10% lower than previously estimated due to a delay in the AI chip business from a major customer. Analysts predict that this trend will continue in the current quarter and Samsung's late response to new technological advancements could jeopardize its market share. However, Vice Chairman Young Hyun Jun remains optimistic and promises to use this challenge as an opportunity to enhance the company's long-term technological competitiveness.
Samsung Electronics Faces Slowdown in AI Chip Business
Background
Samsung Electronics, a global technology leader, has been facing increasing competition in recent years from other tech giants such as Apple and Huawei. In order to maintain its market share, Samsung has invested heavily in artificial intelligence (AI) and other emerging technologies.
Current Situation
In a surprise announcement, Samsung Electronics revealed that its Q3 2024 earnings are expected to be 10% lower than previously estimated due to a delay in the AI chip business from a major customer. Analysts predict that this trend will continue in the current quarter and Samsung's late response to new technological advancements could jeopardize its market share.
Vice Chairman's Response
Despite the setback, Vice Chairman Young Hyun Jun remains optimistic and promises to use this challenge as an opportunity to enhance the company's long-term technological competitiveness. Samsung is reportedly planning to invest more in R&D and accelerate its development of new AI chips.
Top 5 FAQs
1. What caused the delay in the AI chip business? The delay was reportedly caused by a major customer (who is speculated to be Amazon) pushing back its launch of a new product due to technical issues.
2. How will the delay impact Samsung's earnings? Analysts predict that Samsung's Q3 2024 earnings will be 10% lower than previously estimated and that the trend may continue into the current quarter.
3. What steps is Samsung taking to address the situation? Samsung is planning to invest more in R&D and accelerate its development of new AI chips to enhance its technological competitiveness.
4. How is Samsung's market share likely to be affected? Analysts predict that Samsung's late response to new technological advancements could jeopardize its market share. However, Vice Chairman Jun remains optimistic that the company can regain its position.
5. What is the long-term outlook for Samsung Electronics? Despite the current setback, Samsung Electronics is still a global technology leader with a strong foundation in innovation. Analysts are optimistic that the company can recover from this challenge and continue to grow in the long term.
Mumbai's popular Metro Line 3 faced a temporary shutdown today as the BKC Metro Station was temporarily closed for operations. According to officials, the rest of the metro line remains fully functional and the temporary closure was for maintenance purposes. The unexpected shutdown caused some inconvenience to commuters, but authorities assure that the issue will be resolved soon.
Meme stocks have become a hot topic in the stock market, with investors flocking to these highly volatile and speculative stocks. These stocks refer to those that skyrocket in price and trading volume due to social media buzz. However, investing in these stocks can be risky, as they are often overvalued and not based on strong fundamentals. While some investors have seen success with meme stocks, others caution against putting too much of one's portfolio into these highly unpredictable investments. It's a trend that may not last, and predicting when it will reverse can be a costly guessing game.
The Dow Jones Industrial Average and S&P 500 futures inched higher before the opening bell on Thursday, signaling a positive start for US stock markets. Analysts are anticipating the release of key economic data on jobless claims and crude oil stockpiles, which could have an impact on the course of benchmark interest rates. This comes after the Fed's decision to lower interest rates by 25 basis points, citing a strong economy and inflation nearing its target. Stay updated on all stock market news and more on Zeebiz.com.
Sports TechnologyEntertainment, "Trump Jokes about Elon Musk's Overbearing Presence at Mar-a-Lago" Former President Donald Trump joked about tech mogul Elon Musk's frequent presence at his Mar-a-Lago estate, making light of their close relationship. While Trump praised Musk for dedicating time to his election campaign, lawmakers noted that some within Trump's inner circle see Musk's continued presence as overbearing. Musk's involvement in Trump's transition team has sparked debate among the former president's allies, with some viewing it as beneficial and others questioning his persistent influence.
Eicher Motors Ltd., the parent company of Royal Enfield, reported a net profit of ₹1,100 Crore for the second quarter of FY25. Although revenue for the quarter increased by 3.6%, it fell short of projections. VECV, another subsidiary of Eicher Motors, saw an 8% increase in income from operations. Despite a decline in Royal Enfield's sales, the company has announced its entry into the electric mobility market with the launch of a new EV brand.
Nissan South Africa has officially opened its new headquarters in Irene, South Africa, which will serve as the hub for administrative and strategic operations in the country and its Independent Markets Africa division. The move to the new building will enhance collaboration, streamline processes, and provide a more productive and progressive work environment for the team. This decision aligns with modern practices of separating corporate headquarters from manufacturing operations and reflects Nissan's commitment to innovation and efficiency in engaging with the market and customers. The launch of the new Magnite vehicle in November also marks an auspicious month for Nissan South Africa.
Pokarna, a company with a market cap of Rs 2,231 crore, has announced a strategic investment of Rs 440 crore aimed at fulfilling the increasing demand for premium quartz surfaces worldwide. This marks the launch of the company's third Bretonstone production line from Italy's Breton S.p.A., which will set new standards for capacity and environmentally friendly production. However, the stock saw a decline of 9.96% in early trade as equity benchmark indices dropped due to a combination of factors such as retail inflation, muted quarterly earnings, and weak global markets.
NTPC Green Energy, a subsidiary of NTPC Ltd., will launch its IPO on November 19 with a price band of Rs 102-108 per share. The company will also have a shareholders category, allowing current NTPC shareholders to participate. Analysts are optimistic about the IPO, citing the company's operational capacity, contracted projects, and future development plans. With NTPC targeting 60GW of RE capacity by FY32, investors are advised to buy NTPC shares to increase their chances of IPO allotment.
ScottishPower has chosen Siemens Gamesa to supply the turbine blades for their £4 billion East Anglia TWO offshore wind farm. This agreement, worth more than £1 billion, solidifies Hull as the location for the blade production. In this interview, Chet Benham, President & COO of Viridi Energy, discusses their business and focus on renewable natural gas and its role in the energy transition. Additionally, AFRY has been selected by Electroperú to oversee the modernisation and life extension of two hydro power plants in Peru.
Nadhmi al-Nasr, CEO of Neom, the futuristic city development in Saudi Arabia, has suddenly stepped down and will be replaced by an acting CEO from the country's sovereign wealth fund. The Public Investment Fund's board deemed this a natural evolution and strategic move, but the reasons for Nasr's departure are unknown. Neom, envisioned as a 9-million-resident city with extravagant features like a floating business district and the world's tallest skyscrapers, has faced financial and leadership challenges since its announcement in 2017. With projects being delayed, downsized, or cancelled, securing foreign investors has become crucial, but the project's first phase has already exceeded its budget.