European Stocks Flat as Oil Prices Rise, US CPI in Focus 
Asian Currencies Steady Ahead of US CPI as Oil Prices Rise 
Singapore Raises 2026 GDP Growth Forecast as AI Demand Fuels Economy 
Oil Prices Rise as Hormuz Reopening Remains Uncertain 
Asian Stocks Rise as AI Chip Rally Lifts South Korea, Japan 
Oil Prices Rise as Hormuz Tensions Threaten Global Supply 
Australia Sets New Minimum Pay, Insurance Rules for Gig Workers 
UK Retail Sales Rise as World Cup and Heatwave Boost Food, Pubs and Clothing 
Asian Currencies Steady as Markets Await U.S. Inflation Data 
Oil, Gold Rise as Geopolitical Risks Grip Markets Ahead of U.S. CPI 
Gold Price Hits Two-Month High as Investors Await US Inflation Data 
KOSPI Rebounds 20% as Samsung, SK Hynix Lead South Korea Stock Rally 
Oil Prices Rise as US-Iran Talks Stall, Inflation Risks Grow 
Singapore Raises 2026 GDP Growth Forecast to 4.5%-5.5% as AI Boom Fuels Economy 
Dollar Steady as Markets Await U.S. Inflation Data 
Gold Prices Rise as Fed Rate Hike Bets Ease 
Iran War Escalates as US, Houthis Target Ships Near Key Oil Routes 
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)
