Samsung’s Stock Up 12% YTD as Leadership Apologises For Missed AI Steps

Samsung Electronics stock (KRX: 005930) gained an impressive 2.91% today, recapturing the ₩60,000 level after a 12.73% YTD gain. The global tech giant continues to find itself at a critical juncture, with a 12 month decline of 21.7% demonstrating a changing tide.

While recent stock performance has rallied off the lows, the fall itself sparked apologies from leadership as the company seeks to reclaim its competitive edge and capitalise on emerging opportunities, particularly within the AI sector.

Han Jong-hee candidly acknowledged Samsung's failure to fully leverage the AI boom, a misstep that has allowed competitors, notably SK Hynix, to gain ground in the crucial high-bandwidth memory (HBM) market. This segment is vital for powering the advanced AI applications driving the next wave of technological innovation.

“First and foremost, I sincerely apologise for the recent stock performance not meeting your expectations… Over the past year, our company failed to adequately respond to the rapidly evolving AI semiconductor market.” – Han Jong-hee (Samsung CEO)

“The market remains skeptical about our technological competitiveness, keeping our stock under pressure… In addition, U.S.-led tariffs and potential retaliatory tariffs from affected countries are weighing on global stock performance.” – Han Jong-hee (Samsung CEO)

However, despite the near-term challenges, the long-term outlook for Samsung remains largely positive. The company's full-year 2024 performance showcased impressive growth, with revenue reaching ₩301 trillion (a 16% increase year-over-year) and net income soaring to ₩34 trillion (a staggering 132% increase). This solid financial foundation, coupled with a healthy profit margin of 11% and a trailing P/E ratio of 11.64, suggests that the market may be undervaluing the company's potential.

Analysts, while exhibiting mixed sentiment, generally maintain a “Buy” consensus, with a 2025 target price of ₩73,264, a significant 20%+ premium over the current price. The wide range of analyst price targets (from ₩48,000 to ₩93,000) reflects the inherent uncertainty surrounding Samsung's near-term execution, but also the significant upside potential if the company can successfully navigate its current challenges.