Seoul: Samsung Electronics is expected to forecast a 39% plunge in second-quarter operating profit on Tuesday, weighed down by delays in supplying advanced memory chips to artificial intelligence chip leader Nvidia. The world’s biggest maker of memory chips is projected to report an April-June operating profit of 6.3 trillion won ($4.62 billion), marking its lowest income in six quarters and the fourth consecutive quarterly decline.
According to Radio Television Brunei, the significant drop in profits is attributed to the weak sales of AI chips, which have been a crucial component in Samsung’s business strategy. The delays in the supply chain, particularly in delivering advanced memory chips to Nvidia, have exacerbated the situation, causing a notable impact on the company’s financial performance.
The projected earnings underscore the challenges Samsung faces in maintaining its market leadership amid increasing competition and technological advancements in the semiconductor industry. The company has been striving to enhance its capabilities and supply chain efficiency to meet the rising demand for AI technology, but the current setbacks highlight the complexities involved in this rapidly evolving sector.
As Samsung navigates these hurdles, industry analysts are closely monitoring how the company plans to address the supply chain issues and bolster its position in the AI chip market. The upcoming earnings announcement is likely to provide further insights into Samsung’s strategic adjustments and future projections in response to the ongoing challenges.