Concerns over the effects of U.S. tariffs under a potential Donald Trump administration caused shares of Samsung Electronics, the leading memory chip manufacturer in the world, to drop Wednesday to their lowest level in over four years.
The South Korean company Samsung Electronics is the worst performing stock compared to global chipmakers like TSMC, Nvidia, Foxconn, etc., and it is mainly because Samsung lags in AI chips. Nvidia is quite leading AI chips and is far ahead compared to its competitors.
The US presidential elections might be one of the reasons the Samsung Electronics shares hit a 4-year low, because this time the election is won by former president Donald Trump, and he will be increasing tariffs on Chinese imports as Samsung has a quieter reliance on Chinese customers than its local rival SK Hynix.
According to Greg Noh, an analyst at Hyundai Motor Securities, Trump has threatened to impose a universal 10% tariff on imports and a 60% tax on Chinese goods, which would lower demand for chip-using electronics devices. Earlier South Korean President Yoon Suk Yeol also expressed worries that Chinese competitors would lower export prices and undercut Korean semiconductor companies abroad if Trump threatens to impose high tariffs on Chinese imports.
In just 1 year the share has been down by 27 percent and 34% so far this year and is expected to have its worst yearly performance in over 20 years. This year, U.S. chipmaker Nvidia has gained 199%, while shares of SK Hynix have up 32%.
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