Kolkata Stocks：Falling behind in AI race has cost Samsung $122 billion： Report

Samsung Electronics was on track to ride the AI wave just a few months ago, with profits rising and shares nearing record highs. But today, South Korea’s biggest tech company faces a stark reality check.

Samsung has lost $122 billion in market value since July, a tumble of 32% that makes it the largest decline among global chipmakers this year, reported Bloomberg. The rapid downturn signals the steep price of losing technological ground in the fast-moving AI industry.

Concerns are growing over Samsung’s lag in critical areas: AI memory, where rival SK Hynix is quickly advancing, and outsourced chip production, where Taiwan Semiconductor Manufacturing CoKolkata Stocks. (TSMC) has maintained its lead, added the publication's report.

The combination of these setbacks has led foreign investors, who once viewed Samsung as a safe bet, to pull back sharply. Since July, institutional investors have sold roughly $10.7 billion of Samsung stock.

“We’ve more than halved our position in Samsung since July," Sat Duhra, portfolio manager at Janus Henderson Investors, told Bloomberg. Although Duhra sees Samsung’s valuation as appealing, he remains cautious about reinvesting.

Samsung’s revenue has long been tied to consumer electronics, but in recent years, it’s been the semiconductor division driving profits. Now, with setbacks in chip development, Samsung faces mounting pressure to keep up with the AI-fuelled demand for high-bandwidth memory (HBM) chips, crucial for AI processing.

Earlier this month, the company acknowledged delays in its latest HBM rollout, even as SK Hynix and U.S.-based Micron Technology accelerate their own production to meet growing demand.Pune Stock

In its struggle to regain an edge, Samsung is not only up against competitors in AI memory but also facing a costly battle to catch up with TSMC in outsourced chipmaking.

The persistent technology gap with TSMC has prompted Samsung to cut staff as it reevaluates its strategy, a shift that comes as Nvidia Corp. and TSMC ride the AI boom, adding billions to their market values.

Leadership stability has also become a focus for Samsung’s future. Jay Y. Lee, executive chairman and grandson of Samsung’s founder, took the helm two years ago following years of legal troubles.

Now, investors are watching closely for management changes that could shape the company’s next moves. Samsung made a surprise leadership swap earlier this year, appointing memory chip veteran Jun Young-hyun to lead the semiconductor division. However, this shift alone may not restore confidence, with shareholders looking for decisive steps that will reverse Samsung’s downward trend.

Investor sentiment is waning as shares trade near lows. According to the Bloomberg report, NH-Amundi Asset Management’s Park Jinho recently cut his Samsung holdings. “With Samsung executives and engineers leaving, little seems to be changing.” As Samsung’s challenges grow, Park and others are rebalancing toward SK Hynix, which they see as better positioned to take advantage of AI-driven opportunities in tech’s most dynamic markets," Jinho said.

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