Trump's election and the decline in demand for AI chips have caused Samsung's shares to drop to its lowest level in four years.

Samsung's problems have been made worse by worries about possible tariffs from Trump. The former president has suggested a large 60% tax on Chinese goods in particular, as well as a broad 10% duty on imports. With a 34% decline this year, Samsung's stock performance has been dismal.

On Wednesday, the stock of Samsung Electronics, the biggest memory chip manufacturer in the world, fell to its lowest level in more than four years. From falling behind rivals in the AI chip market to rekindled worries about possible US tariffs under a Donald Trump presidency, the South Korean tech behemoth has been battling a perfect storm of difficulties.

The drop is a major blow to Samsung, which has had difficulty keeping up with multinational chipmakers like TSMC and NVIDIA. Samsung's stock is among the poorest performing in the semiconductor industry this year due to its inability to adequately capitalize on the increasing demand for artificial intelligence processors.

Samsung's problems have been made worse by worries about possible tariffs from Trump. The former president has suggested a large 60% fee on Chinese goods in particular, as well as a broad 10% duty on imports. Analysts caution that since Samsung depends so largely on Chinese consumers, such actions could have a negative effect.

BNK Investment & Securities' Lee Min-hee pointed out that Samsung might be more affected than regional rival SK Hynix, which has successfully increased sales of high-end AI server chips to US firms like NVIDIA and has had less exposure to Chinese markets.

Officials in South Korea are already alarmed by the potential repercussions of these tariff threats. President Yoon Suk Yeol expressed worries that higher import duties on China might force Chinese rivals to lower export prices, further straining Korean chip producers' capacity to compete globally.

Samsung's stock has performed poorly, down 34% so far this year and on track to have its worst annual decrease in more than 20 years.

In contrast, SK Hynix's strategic shift to selling AI chips in the US has resulted in a 32% gain. This year, the stock price of NVIDIA, a major player in the AI chip business, has increased by an incredible 199%.

Samsung's stock dropped 2.1% as of Wednesday morning, continuing a four-session losing run. It even dropped as low as 51,700 won, the lowest since June 2020. The KOSPI index as a whole also had a decline, falling 1.5%. In the meanwhile, SK Hynix recovered, increasing by up to 2% following two consecutive days of declines.

The decline highlights how Samsung is under increasing pressure to modify its approach and deal with the growing risks posed by both international rivals and geopolitical unpredictabilities. Samsung's future is uncertain due to the changing demand for AI chips and the impending trade conflicts.