Samsung Electronics Co. has seen a significant decrease in market value, amounting to $122 billion. This decline highlights the volatility of the semiconductor industry, which is facing increased competition.

Despite initially being well-positioned to benefit from the global AI boom, the company's shares have dropped by 32% since reaching their peak on July 9. Concerns have arisen regarding Samsung's ability to compete with rivals such as SK Hynix in AI memory and Taiwan Semiconductor Manufacturing Co. in outsourced chipmaking.

Although the company experienced a strong profit rebound in the first quarter of 2024, driven by its semiconductor division and successful sales of Galaxy S24 smartphones, international investors remain skeptical about Samsung's future prospects. Notably, Pictet Asset Management Ltd. and Janus Henderson Investors SP Ltd. have expressed doubts about the company's planned overhaul to regain competitiveness. Since the end of July, overseas investors have sold approximately $10.7 billion worth of Samsung shares, indicating a lack of confidence in a swift turnaround.