After months of investor frustration, Samsung Electronics Co.'s (OTC:SSNLF) leadership is once again on the defensive--this time pledging bold moves to recover lost ground in AI and chip dominance.
What Happened: On Wednesday, At the company's annual shareholder meeting in Suwon, South Korea, Samsung co-CEO Han Jong-hee issued another public apology, reported Reuters.
“First and foremost, I sincerely apologize 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 stated.
See Also: Meta's AI Push Could Add $100 Per Share While Tesla Faces EV Headwinds: Top Analyst
He said the company will also adjust its supply chain strategy in response to global trade dynamics, including U.S. tariffs.
Han also promised that Samsung would pursue "meaningful" mergers and acquisitions to spark growth.
Why It's Important: Samsung has lost ground to rivals like SK Hynix and Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) in key semiconductor segments, especially high-bandwidth memory chips used by Nvidia Corporation (NASDAQ:NVDA) for AI applications.
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This is Samsung's second public apology in five months.
“We have caused concerns about our fundamental technological competitiveness and the future of the company due to our performance falling short of the market's expectations," the company said in a statement released in October. “Many people are talking about Samsung's crisis. We, who are leading the business, are responsible for all of this.”
Samsung’s fourth-quarter revenue rose 12%, reaching 75.8 trillion Korean won ($52.2 billion). However, due to market conditions, its operating profit dropped 30% quarter-over-quarter to 6.5 trillion Korean won ($4.48 billion).
Image credits: Arcansel on Shutterstock.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
