Breaking news

Samsung’s Q4 Earnings Miss Expectations Amid Mounting Chip Challenges

by THEFUTURE.TEAM

January 11, 2025

Samsung Electronics reported a disappointing preliminary operating profit for the fourth quarter of 2024, falling significantly short of market estimates. The South Korean tech giant’s struggles to ramp up advanced chip production for Nvidia, coupled with sluggish demand for traditional memory chips, took a toll on its earnings.

The company expects an operating profit of 6.5 trillion won ($4.5 billion) for the quarter, well below analysts’ SmartEstimate of 7.7 trillion won. While the figure represents a 131% increase compared to the same period last year, it is a sharp 29% drop from the prior quarter. Preliminary revenue came in at 75 trillion won, slightly under expectations.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Chip Woes Weigh Heavily

Samsung’s focus on manufacturing high-bandwidth memory (HBM) chips for Nvidia’s artificial intelligence GPUs has proven costly. Nvidia CEO Jensen Huang recently acknowledged the company’s efforts, stating that Samsung needs to “engineer a new design” to meet Nvidia’s requirements, but he expressed confidence in their progress.

Rising research and development expenses and underutilised factory capacities in the logic chip division further dragged profits. Analysts estimate losses in this segment may have widened to $1.5 billion during the quarter, up from $960 million in Q3.

Market Rivalry Intensifies

As Samsung struggled, rival SK Hynix—Nvidia’s main HBM chip supplier—reported strong performance and record earnings, with its stock surging 23% last year. Samsung’s own shares dropped 32% over the same period, significantly underperforming South Korea’s broader market.

Despite these challenges, some analysts believe Samsung’s chip business may have reached its lowest point. “There are concerns about Samsung’s major businesses continuing to lose competitiveness. But chip demand may have bottomed out,” said Lee Min-hee of BNK Investment & Securities.

Device Business Under Pressure

Samsung’s devices division, which includes smartphones, TVs, and appliances, also saw earnings decline due to slower demand and rising competition. Sales of premium foldable smartphones were particularly disappointing.

The division’s struggles were compounded by the South Korean won’s depreciation to a 15-year low, driven by domestic political instability and global trade tensions. While a weaker won typically boosts overseas revenue, it wasn’t enough to offset waning demand.

Looking Ahead

Despite the challenges, Samsung ended the trading session 3.4% higher, as investors viewed the weak results as already priced into the stock. With detailed Q4 results expected on January 31, analysts will be closely watching for updates on Samsung’s progress in advanced chip manufacturing and recovery in its mobile and device businesses.

The tech giant faces a pivotal moment as it navigates intensifying competition, rising costs, and shifting market dynamics in the global semiconductor industry.

The Future Forbes Realty Global Properties

Moonshot’s Kimi K2: A Disruptive, Open-Source AI Model Redefining Coding Efficiency

by THEFUTURE.TEAM

July 14, 2025

Innovative Approach to Open-Source AI

In a bold move that challenges established players like OpenAI and Anthropic, Alibaba-backed startup Moonshot has unveiled its latest generative artificial intelligence model, Kimi K2. Released on a late Friday evening, this model enters the competitive AI landscape with a focus on robust coding capabilities at a fraction of the cost, setting a new benchmark for efficiency and scalability.

Cost Efficiency and Market Disruption

Kimi K2 not only offers superior performance metrics — reportedly surpassing Anthropic’s Claude Opus 4 and OpenAI’s GPT-4.1 in coding tasks — but it also redefines pricing models in the industry. With fees as low as 15 cents per 1 million input tokens and $2.50 per 1 million output tokens, it stands in stark contrast to competitors who charge significantly more. This cost efficiency is expected to attract large-scale and budget-sensitive deployments, enhancing its appeal across diverse client segments.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Benchmarking Against Industry Leaders

Moonshot’s announcement on platforms such as GitHub and X emphasizes not only the competitive performance of Kimi K2 but also its commitment to the open-source model—rare among U.S. tech giants except for select initiatives by Meta and Google. Renowned analyst Wei Sun from Counterpoint highlighted its global competitiveness and open-source allure, noting that its lower token costs make it an attractive option for enterprises seeking both high performance and scalability.

Industry Implications and the Broader AI Landscape

The introduction of Kimi K2 comes at a time when Chinese alternatives in the global AI arena are garnering increased investor interest. With established players like ByteDance, Tencent, and Baidu continually innovating, Moonshot’s move underscores a significant shift in AI development—a focus on cost reduction paired with open accessibility. Moreover, as U.S. companies grapple with resource allocation and the safe deployment of open-source models, Kimi K2’s arrival signals a competitive pivot that may influence future industry standards.

Future Prospects Amidst Global AI Competition

While early feedback on Kimi K2 has been largely positive, with praise from industry insiders and tech startups alike, challenges such as model hallucinations remain a known issue in generative AI. However, the model’s robust coding capability and cost structure continue to drive industry optimism. As the market evolves, the competitive dynamics between new entrants like Moonshot and established giants like OpenAI, along with emerging competitors on both sides of the Pacific, promise to shape the future trajectory of AI innovation on a global scale.