China Exports Beat July Forecasts as AI Demand Fuels High-Tech Trade 
Singapore Says One-Third of U.S. Exports Hit by New 12.5% Tariff 
Trump Unveils $3 Billion U.S. Critical Minerals Push 
Asian Currencies Steady as Markets Await U.S. Jobs Data 
Asian Stocks Slide as Semiconductor Selloff Weighs on South Korea and Japan 
Oil Prices Set for Steep Weekly Losses as Hormuz Deal Stalls 
Gold Prices Surge 7% as Dollar Falls, Fed Rate Hike Bets Ease 
US Dollar Falls as Weak July Jobs Report Dents Fed Rate Hike Bets 
US Stock Futures Rise as Markets Await July Payrolls Data 
US Dollar Gains as Iran Tensions, Fed Rate Hike Bets Rise 
Asian Currencies Hold Steady as US Dollar Nears Seven-Week Low Ahead of Key Jobs Data 
Brazil Cuts Selic Rate to 14% as Inflation Eases but Risks Persist 
US Stock Futures Hold Steady as Iran Hormuz Deal and Earnings Shape Market Sentiment 
Oil Prices Slip as Hormuz Shipping Progress and Rising U.S. Crude Stocks Weigh on Market 
Asian Stocks Cautious Ahead of US Jobs Data as Oil Rises 
Asian Stocks Mixed as Chip Selloff Hits KOSPI, Nikkei Ahead of US Jobs Data 
Philippine GDP Growth Slows to 2.3% in Q2 
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)
