Asia FX Weekly Gains Hold Amid U.S. Inflation Data and Iran Ceasefire Uncertainty 
Bank of Japan Governor Signals Accommodative Stance Amid Negative Real Rates 
White House Warns Staff Over Insider Trading Amid Suspicious Oil Market Bets 
Asian Currencies Hold Steady as Middle East Ceasefire Doubts Weigh on Markets 
Gulf Ceasefire Cracks Rattle Asian Markets and Push Oil Prices Higher 
Trump Slams Iran Over Strait of Hormuz Oil Restrictions Amid Fragile Ceasefire 
Asian Markets Retreat as Gulf Crisis Fuels Oil Surge and Inflation Fears 
Colombia and Ecuador Trade War Escalates With Retaliatory Tariffs 
Middle East Conflict Threatens Global Economic Stability, World Bank Warns 
U.S. Markets Post Strong Weekly Gains Despite Middle East Tensions and Rising Energy Prices 
Oil Prices Rebound as Hormuz Disruptions and Middle East Tensions Rattle Markets 
Chinese Brands Are Taking Over Brazil — And It's Just Getting Started 
U.S. Natural Gas Market Faces Short-Term Pressure but Long-Term Demand Surge 
Asian Stocks Rally on Ceasefire Hopes and Bargain Buying 
Trump Claims Oil Tankers Heading to U.S. Amid Iran War and Strait of Hormuz Crisis 
Goldman Sachs, ANZ Cut Oil Forecasts Amid U.S.-Iran Ceasefire Hopes 
Samsung Electronics is projected to report a four-fold increase in Q3 operating profit due to recovering chip demand. However, the company’s slow move into the booming AI chip market may impact its future growth trajectory.
Q3 2024 Profit Surge Amid Chip Demand Recovery
Analysts estimate Samsung's operating profit at around 10.33 trillion won ($7.67 billion) for Q3, significantly higher than 2.43 trillion won a year earlier. However, this is relatively unchanged from 10.44 trillion won in the previous quarter, indicating a slowing recovery pace. The global semiconductor market has improved, primarily driven by demand for AI server chips, yet demand for traditional chips used in smartphones and PCs is softening.
Lagging in the AI Chip Market & Competitive Pressure
Samsung faces challenges catching up to competitors like SK Hynix and Micron in the high-margin AI chip sector, supplying major players like Nvidia. Additionally, Samsung is competing against growing Chinese semiconductor companies for commodity chip production. Analysts predict the company’s chip division will swing to a profit of 5.5 trillion won year-on-year but will see a 15% drop from the previous quarter, partly due to bonus provisions.
Geopolitical Risks & Market Shifts
Samsung's slower response to the AI chip market and its dependence on traditional mobile chips and China make it susceptible to geopolitical risks. Analyst Daniel Kim of Macquarie Equity Research noted that a potential commodity DRAM supply glut may impact Samsung more severely than its rivals like SK Hynix.
Mobile Business & Share Performance
Sales of Samsung's premium foldable phones have underperformed, contributing to a 2.6 trillion won operating profit in its mobile and network division—a 20% decrease from last year. Meanwhile, Samsung shares have declined by 23% this year, trailing SK Hynix’s 23% gain.
Upcoming Earnings Announcement
Samsung Electronics is set to release its preliminary Q3 results on Tuesday, with full financial details to be reported later in the month.
($1 = 1,336.39 won)
