Samsung saw a Q4 profit miss, with an operating profit of 6.5 trillion won ($4.5 billion). This fell below analysts’ 8.96 trillion won target. Yet Samsung stock jumped 3.1% after Nvidia CEO Jensen Huang shared positive comments about Samsung’s memory chip progress. Strong AI chip demand also lifted the market mood.
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How Nvidia Talks and AI Chip Demand Are Boosting Samsung’s Stock Amid Q4 Profit Miss
Q4 Earnings Breakdown and Market Response
The Q4 profit miss showed in Samsung’s revenue of 75 trillion won. This missed market targets. The company spent heavily on research and new equipment. These costs went toward catching up with SK Hynix and Micron in AI chips. Samsung stock surge trends show investors remain hopeful.
Nvidia Partnership Progress
At CES in Las Vegas, Huang boosted Samsung’s AI chip demand outlook. “Samsung has to engineer a new design, but it’s working very fast,” Huang said. This news sparked a Samsung stock surge. Samsung’s chip chief, Jun Young-hyun, had earlier said, “Samsung must now review its organizational culture and processes,” while apologizing for poor results.
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Operational Challenges and Strategic Shifts
During the Q4 profit miss, Samsung’s chip production slowed down. Counterpoint analyst Tom Kang said: “Samsung is just going through one of its toughest moments in its history. They missed the high-bandwidth memory boom and needs to show it’s supplying AI memory to new clients.”
Future Outlook and Market Position
The Q4 profit miss showed Samsung’s AI chip market struggles. Yet its memory chip investments point to future growth. Greg Noh from Hyundai Motor Securities said Samsung’s profit “was possibly eroded by one-off costs as well as disappointing chip and display earnings.”
BNK Investment & Securities analyst Lee Min-hee noted: “There are concerns about Samsung’s major businesses continuing to lose competitiveness. But chip demand may have bottomed already,” adding that “smartphone demand in China may gradually improve.”
Vital Knowledge’s Adam Crisafulli stated: “While Samsung’s fourth quarter numbers are ugly, the firm likely won’t be a non-factor in high-bandwidth memory for long.” This suggests that the current Nvidia talks impact could improve future results.
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