Samsung’s sudden $122 Billion wipeout shows the cost of sleeping on AI

Samsung Electronics has faced a steep decline, with shares down 32% since July, costing it $122 billion in market value as it loses ground in AI and chip technology to SK Hynix and TSMC.

Challenges include delays in high-bandwidth memory (HBM) production and ongoing struggles to close its chipmaking gap with TSMC. Major investors like Pictet Asset Management and Janus Henderson have significantly reduced their Samsung holdings.

The company plans a management overhaul, but leadership uncertainty and increasing competition in AI memory and foundry services continue to impact investor confidence and profitability.