Samsung Faces Tough Shareholder Meeting Amid AI Struggles and Market Challenges
Samsung Electronics is preparing for a challenging annual general meeting as shareholders express frustration over its failure to capitalize on the AI boom, which contributed to its poor stock performance last year.
At the meeting, scheduled for 9 a.m. (0000 GMT), top executives, including Co-CEO Han Jong-hee and chip division head Jun Young-hyun, will address key concerns such as U.S. tariffs, future growth strategies, and efforts to regain technological leadership.
In internal discussions, Samsung has acknowledged that it has lost its competitive edge, particularly in semiconductors, where it trails SK Hynix in high bandwidth memory (HBM) chips—a critical component for Nvidia’s AI GPUs. Chairman Jay Y. Lee admitted in an executive seminar that the company’s focus has been on maintaining the status quo rather than driving big innovation.
Samsung’s shares dropped nearly 30% last year, while rival SK Hynix gained 26%. The company has also lost market share to TSMC in contract chip manufacturing and to Apple and Chinese rivals in smartphones. Adding to its challenges, U.S. export restrictions on China—one of Samsung’s biggest markets—have slowed its AI chip sales, exposing it to further risks from potential U.S. tariffs on China.
To stabilize its stock, Samsung launched a $7.2 billion share buyback plan in November, helping its shares recover 7% since then. As South Korea’s most valuable company, Samsung holds a $235 billion market cap, representing 16% of the country’s stock exchange, with nearly 40% of South Korean investors owning its shares.
With shareholders demanding stronger AI leadership and innovation, Samsung executives will need to outline a clear vision for future growth, market competitiveness, and technological advancement.
