Samsung Electronics is expected to forecast a 39 per cent plunge in second-quarter operating profit on Tuesday, weighed down by delays in supplying advanced memory chips to artificial intelligence (AI) chip leader Nvidia.
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The world’s biggest maker of memory chips is projected to report an April-June operating profit of 6.3 trillion won (US$4.62 billion), its lowest income in six quarters, according to LSEG SmartEStimate.
The prolonged weakness in its financial performance has deepened investor concerns over the South Korean tech giant’s ability to catch up with smaller rivals in developing high-bandwidth memory (HBM) chips used in AI data centres.
Its key rivals, SK Hynix and Micron Technology, have benefited from robust demand for memory chips needed for AI, but Samsung’s gains have been subdued as it relies on the China market, where sales of advanced chips have been restricted by the US.
Its efforts to get the latest version of its HBM chips to Nvidia certified by the US company were also moving slowly, analysts said.
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US curbs, Nvidia delays likely to drive Samsung’s profit down 39%
