Samsung Expected to Report 39% Profit Decline Amid Delays in AI Chip Supply

Samsung Electronics is anticipated to report a 39% drop in second-quarter operating profit, impacted by slower-than-expected progress in delivering advanced memory chips for artificial intelligence applications, Reuters reports.

According to analysts polled by LSEG SmartEstimate, the South Korean technology giant is expected to post operating profit of 6.3 trillion won ($4.62 billion) for the April–June quarter — its lowest in six quarters and a steep decline from 10.4 trillion won a year earlier.

The dip in profit is attributed in large part to delays in supplying its HBM (high-bandwidth memory) chips to Nvidia, a key player in the AI chip sector. While competitors such as SK Hynix and Micron have already benefited from strong AI-driven demand, Samsung’s ramp-up has been more muted.

Analysts say that US trade restrictions on advanced chip exports to China, where Samsung has a strong market presence, have further complicated the company’s supply efforts. Samsung’s newest HBM3E 12-high chips are still undergoing certification with Nvidia, and significant shipment volumes are unlikely this year, according to Ryu Young-ho, senior analyst at NH Investment & Securities.

While Samsung has not confirmed the status of certification with Nvidia, it has begun shipping the same chips to US chipmaker AMD, as confirmed by AMD in June.

Despite weak chip performance, Samsung’s smartphone sales appear more resilient, driven in part by pre-emptive stockpiling ahead of possible US tariffs on imported handsets. Still, broader uncertainty lingers over the company’s major business lines, from home appliances to semiconductors, as the Trump administration’s trade agenda unfolds — including proposed 25% tariffs on non-US-made smartphones and the July 9 deadline for “reciprocal” tariffs.

In addition, Washington is reviewing licenses granted to foreign chipmakers, including Samsung, which could complicate the transfer of US technology to Samsung’s facilities in China.

Samsung shares, down 1.9% as of Monday morning trading, have risen about 19% this year — underperforming the benchmark KOSPI, which has gained 27.3% in the same period. Among major memory chipmakers, Samsung remains the weakest performer in 2025.

Samsung will officially release its second-quarter earnings guidance on Tuesday.

($1 = 1,363.36 won)