Now South Korea's biggest company has become a stark example of how quickly fortunes can turn in an industry where the spoils go to those who maintain a technological edge.
As concerns mount that the company is losing out to smaller rival SK Hynix in AI memory and failing to gain on Taiwan's TSMC in outsourced chip-making, Samsung shares have tumbled 32 from this year's peak on 9 July. The company has lost 122-billion of market value in that span, more than any other chip maker worldwide.
Samsung has promised an overhaul to regain competitiveness, but international money managers including Pictet Asset Management and Janus Henderson Investors are unconvinced a turnaround is imminent. Overseas investors have sold about 10.7-billion worth of the South Korean company's shares on a net basis since the end of July.
"We have more than halved our position in Samsung over the last few months - it was the largest position in our strategy in July," said Sat Duhra, a portfolio manager at Janus Henderson Investors in Singapore. While Duhra said the shares have fallen to an attractive valuation, he has "no intention" to buy them for now.
Samsung is "losing its technology leadership in the semiconductor business", said Young Jae Lee, London-based senior investment manager of the global emerging markets high-dividend team at Pictet Asset Management. "Technology leadership is difficult to regain in the short term by nature," he said, adding that the firm has been reducing its Samsung holding.
