Samsung Electronics on Wednesday reported a 34% year-on-year drop in operating profit for the latest quarter, as weak demand for its TVs and other consumer electronics offset hard-won gains in the slowly recovering PC chip market.
The South Korean tech giant said it expects its business to improve around 2024, predicting increased demand for semiconductors that will power artificial intelligence features increasingly used in smartphones, private computers and other products. However, macroeconomic uncertainties could continue to impact your business. in the short term.
Samsung’s operating profit was measured at 2.8 trillion won ($2.1 billion) for the three months through December, compared to 4.3 trillion ($3.2 billion) from the same period last year. Its operating profit for the full year 2023 was at 6.5 trillion won ($4.8 billion), which marked an 85% decline from 2022 and represented the company’s lowest since 2008, when global markets were weathering a financial crisis.
While the company’s semiconductor division posted a loss of 14.9 trillion won ($11 billion) in 2023, the losses narrowed during the fourth quarter, with the DRAM business returning to profit. The company said in October that it plans to more than double its production capacity of advanced high-bandwidth memory chips in 2024 to respond to demands created by AI.
“In 2024, the memory industry expects the market to continue despite various potential headwinds, coupled with interest rate policies and geopolitical issues,” Samsung said in a statement.
The company is also striving to increase sales of its newest smartphone, the Galaxy S24, which comes with a variety of new AI-enabled features, adding phone calls with live translation in thirteen languages and 17 dialects.
The first human patient received an implant from brain chip startup Neuralink on Sunday and is recovering well, the company’s billionaire founder Elon Musk said.
“Initial results show promising neuron spike detection,” Musk said in a post on the social media platform X on Monday.
Spikes are activity by neurons, which the National Institute of Health describes as cells that use electrical and chemical signals to send information around the brain and to the body.
Last year, the U. S. Food and Drug Administration gave the company permission to conduct its first trial to test its implant in humans, a step in the startup’s ambitions to help patients overcome paralysis and a host of neurological problems.
In September, Neuralink won approval for enrollment in the human trial.
The study uses a robot to surgically place a brain-computer interface (BCI) implant in a region of the brain it is intended to move, Neuralink previously said, adding that its initial goal is to allow other people to access a computer’s cursor or keyboard. using only your thoughts.
The “ultra-thin” wires in the implants transmit signals to the participants’ brains, Neuralink said.
Neuralink’s first product would be Telepathy, Musk said in a separate post on X.
The startup’s PRIME is a test of its brain-computer wireless interface aimed at comparing implant and surgical robot protection.
Neuralink did not immediately respond to a Reuters request for further details.
The company has faced calls for scrutiny regarding its safety protocols. Reuters reported earlier this month that the company was fined for violating US Department of Transportation (DOT) rules regarding the movement of hazardous materials.
The company was valued at about $5 billion last June, but four lawmakers in late November asked the U. S. Securities and Exchange Commission to investigate whether Musk had misled investors about protecting his generation after veterinary records showed implant disorders in monkeys. adding paralysis. seizures and swelling of the brain.
Musk wrote in a social media post on September 10 that “no monkeys have died from a Neuralink implant. ” He added that the company chose “terminal” monkeys to minimize risks to healthy monkeys.
Pony Ma, chief executive officer and co-founder of Tencent Holdings, said the company’s video game business is facing major demanding situations from its competitors, but it is catching up with the advancement of synthetic intelligence (AI).
Ma, speaking at Tencent’s annual meeting at a Shenzhen stadium on Monday, said the company rests on its laurels at games as its competition scored more successes. Video games account for more than 30% of Tencent’s revenue.
Chinese media outlet Jiemian published portions of Ma’s speech online. A user with direct knowledge of the matter, who declined to be identified because he has the right to speak to the media, showed the content.
Ma’s speech highlights concerns about whether Tencent, the world’s largest gaming company and operator of China’s largest social network, WeChat, can protect its standing as China’s smartest tech company in an era of increased festival and disruptive new technologies.
Tencent responded to a request for comment on Tuesday.
“Gaming is our core business. . . But over the past year, we have faced significant challenges,” Ma said. “We find ourselves lost, while our competition continues to produce new products, giving us the feeling of having completed nothing. “
Ma added that new games introduced through Tencent had not performed as the company expected.
Ma’s remarks come at a time when Chinese game developers miHoYo and NetEase have outshone Tencent with hit titles like “Genshin Impact” and “Eggy Party”. While Tencent’s past hits such as “Honor of Kings” and “PUBG Mobile” continue to deliver strong revenue, more recent products are falling short of expectations.
When it comes to AI, Ma said Tencent has caught up. “We can finally follow the pace of the first-tier companies. We don’t count ourselves as the most leading but at least we are not too behind,” he said.
Ma said Tencent deserves to focus now on integrating its “Hunyuan” AI style into other business scenarios to empower it, rather than temporarily turning AI into products.
“In the short term, in the next one or two years, I think there probably still won’t be a big application of local AI,” he said.
Ma’s speech also focused on e-commerce. In recent years, Tencent has tried to make WeChat more like ByteDance’s Douyin short-video platform, which has generated huge profits through e-commerce.
“WeChat is our most physically powerful platform in terms of the number of users and its ecosystem. But he’s 12 years old. . . Now the big question for us is how to locate new shoots from the old tree that is WeChat,” Ma said.
Bahrain will host the General Assembly of the Organization for Digital Cooperation (DCO) on Wednesday.
Chaired by Bahrain’s Minister of Transportation and Telecommunications and DCO Chair of the Council Mohammed bin Thamer Al Kaabi, the event will discuss the organization’s plans and initiatives aimed at promoting digital prosperity.
In a statement, the DCO said the event would be attended by ministers and officials representing the DCO’s 15 member states, such as DCO Secretary General Deemah AlYahya, high-level delegations of partners and observers, representatives of invited countries and foreign organizations.
They are expected to discuss strategic initiatives to foster global digital cooperation, shed light on the status of the digital economy and ways to overcome challenges faced in achieving inclusive and sustainable growth in this vital sector.
Bharani Minister Mohammed Al Kaabi said: “It is an honour for us to host the Third GCO General Assembly, which brings together member states and prominent visitors to talk about achievements and launch new projects aimed at achieving virtual prosperity and growth. »
Through joint external action and fruitful cooperation, the General Assembly will seek to promote an inclusive and sustainable expansion of virtual transformation and maximize the benefits of all countries from the opportunities and projects that will be had to expand the virtual economy, he added.
As a founding member of the DCO, Bahrain is committed to sharing its wisdom and experience that have helped its economic growth, he said.
During Bahrain’s presidency in 2023, Qatar and Bangladesh joined the OECD as new member states. Manama presented the Digital Prosperity Awards to inspire cooperation and facilitate innovation and virtual transformation among member states.
Secretary-General AlYahya stressed the importance of holding the General Assembly in Manama, saying: “Digital cooperation is key to reaping the benefits that arise from the opportunities presented through the virtual economy. “
“The Third General Assembly will serve as a strategic platform for the engagement of Member State governments, the private sector and civil society in progressing a roadmap for the current year. This addresses the development of demanding situations and seizes opportunities to facilitate virtual prosperity for all,” he said.
He added that he plans to meet with all representatives of the DCO observer members, partners and visitors in Manama to review the achievements of the DCO in 2023 and discuss the projects for 2024, thus helping to propel the organization towards achievement. the objectives defined in its strategic roadmap for 2030.
The General Assembly will explore the expansion of markets and their impact on the virtual economy; the price of knowledge as a strategic asset in the virtual age and how to use it well to achieve expansion; and tactics to achieve a sustainable virtual economy that contributes to improving the quality of life and emphasizes the central role of others as an essential detail in the process of progression.
The General Assembly will discuss the DCO’s plan for 2024 and the new projects it will launch as a component of its 2030 strategic roadmap to advance global virtual cooperation towards an inclusive and sustainable virtual economy. He will also talk about the monetary and administrative reports submitted through the General Secretariat of the organization.
The last DCO General Assembly was held in Riyadh, Saudi Arabia, in February 2023. The DCO brings together the ministries of communications and data generation of 15 countries: Bahrain, Bangladesh, Cyprus, Djibouti, Gambia, Ghana, Jordan, Kuwait, Morocco, Nigeria. , Oman, Pakistan, Qatar, Saudi Arabia and Rwanda.
Together, OECD member states make up more than $3. 3 trillion in GDP and a market of approximately 800 million people, more than 70% of whom are under the age of 35.
Intel fell more than 12% on Friday after a gloomy first-quarter profit outlook as the chipmaker tries to catch up in the AI race while facing a weak PC market.
While AI is driving a boom in the chip sector, Intel appears to be an exception, analysts say. Semiconductor manufacturers that make chips to meet the large data needs of generative AI were among the biggest stock market gainers in 2023.
Forecasts from Intel, one of the largest suppliers of PC chips, weighed on the rest of the industry. The Philadelphia SE Semiconductor Index fell 2. 7% to its worst day in more than three weeks.
“AI turns out to be unless Intel,” said Hans Mosesmann, an analyst at Rosenblatt Securities, which has a stock sell score.
The lack of any perceivable AI growth vector that moves any dial “points to another, yes another, transitional year,” he added.
Shares of chipmakers Nvidia, Advanced Micro Devices, Qualcomm and Micron Technology fell between 1. 3% and 2. 8%.
Intel is expected to lose about $26 billion in market value, if losses hold, on its $43. 47 percentage value in morning trading. Their percentages have skyrocketed by 90% in 2023.
The chipmaker forecast current-quarter revenue that could fall short of market estimates by more than $2 billion.
“There’s a danger Intel is being left behind as chips from the likes of Nvidia and Advanced Micro Devices play an increasingly important role in the data-hungry AI industry,” said Russ Mould, investment director at AJ Bell.
While Intel is not yet competitive in the AI-specific chip market, its core processing sets (CPUs) are used alongside Nvidia’s AI chips, and one-third of Intel’s server processors are now sold as components of AI systems.
Some analysts have had positive comments on the stock, with at least 15 brokerages raising their value targets. The median value among brokerages is $44, according to LSEG data.
“The company still has a lot to gain in the long term from its commitment to AI. Margins look strong and CEO Pat Gelsinger’s plan will continue to be implemented, albeit at a slower pace,” said Thomas Monteiro, senior analyst at Investing. com. .
Intel stock is trading at about 28 times its trailing 12-month earnings estimates, with 45. 08 for AMD and just around 30 for Nvidia, according to LSEG data.