For fiscal 2024, Samsung achieved 300.9 trillion won in revenue and 32.7 trillion won in operating profit, marking significant growth from the previous year. However, the company anticipates challenges in the semiconductor market, though it expects revenue growth from its AI-powered smartphones like the Galaxy S25 series. Samsung's stock fell over 2% following the news, as it continues to face competition from SK Hynix in the high bandwidth memory sector.
Key takeaways:
- Samsung Electronics reported better-than-expected fourth-quarter revenue but a sharp fall in operating profit due to higher R&D costs in its chip business.
- The company warned of limited earnings growth in the first quarter due to weakness in the memory chip market, despite progress in meeting Nvidia's requirements for higher-end memory chips.
- Samsung's chip business posted record-high fourth-quarter revenue, but its revenue was surpassed by SK Hynix, which leads in high bandwidth memory chips used in Nvidia's GPUs.
- Samsung's stock fell over 2% in early trading in South Korea following the report.