Samsung's Q2 Profit Plummets Amid AI Chip Challenges and US Trade Restrictions
21 Sources
[1]
Samsung Elec Q2 profit likely to drop 39% on weak AI chip sales
SEOUL, July 7 (Reuters) - Samsung Electronics (005930.KS), opens new tab 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 (NVDA.O), opens new tab. The world's
[2]
Samsung profits take big hit from US chip controls and AI memory shortfalls
Samsung Electronics delivered an earnings shock on Tuesday, projecting a 56 per cent drop in second-quarter operating profit, as US restrictions on China and its struggle to supply key customer Nvidia with advanced memory products weighed on its performance. The company, one of the world's largest
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Samsung expects a 56% drop in Q2 operating profit, far short of estimates
SEOUL, July 8 (Reuters) - Samsung Electronics (005930.KS), opens new tab on Tuesday projected a 56% drop in second-quarter operating profit from a year earlier, missing analysts' estimates by far. Its chip business struggled with weak sales of artificial intelligence chips, dogged by delays in the
[4]
Samsung expects second-quarter profits to more than halve as it struggles to capture AI demand
The memory chip and smartphone maker said in its guidance that operating profit for the quarter ending June was projected to be around 4.6 trillion won for the April-June period, down from 10.44 trillion Korean won year over year. The figure is a deeper plunge compared to smart estimates from
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Samsung's profit plunges as AI chip woes and US tariffs bite
Serving tech enthusiasts for over 25 years. TechSpot means tech analysis and advice you can trust. What just happened? Samsung Electronics shocked investors with a forecasted 56 percent drop in second-quarter operating profit, projecting earnings of 4.6 trillion Korean won (approximately $3.3
[6]
Samsung projects a 56% plunge in operating profit, blaming U.S. chip controls on China
The firm is the flagship subsidiary of South Korean giant Samsung Group, by far the largest of the family-controlled conglomerates that dominate business in Asia's fourth-largest economy. The tech giant said in a regulatory filing that its April-June operating profits were expected to drop to 4.6
[7]
Samsung Q2 profits to tumble on weak AI chip sales to China
Samsung is bracing for a steep drop in profits this quarter, pointing to weaker AI-chip sales and ongoing U.S. export restrictions on advanced chips to China as key factors behind the slump. The company said Tuesday it expects operating profit for the April-June period to land around 4.6 trillion
[8]
Samsung warns of big profit miss from US restrictions on advanced AI chip exports - SiliconANGLE
Samsung warns of big profit miss from US restrictions on advanced AI chip exports Semiconductor and smartphone giant Samsung Electronic Co. Ltd. said on Tuesday morning in South Korea that it's anticipating its second quarter profit to decline 56% from a year earlier, due to sluggish sales in its
[9]
Samsung warns of big profit miss due to U.S. restrictions on advanced AI chip exports - SiliconANGLE
Samsung warns of big profit miss due to U.S. restrictions on advanced AI chip exports Semiconductor and smartphone giant Samsung Electronic Co. Ltd. said on Tuesday morning in South Korea that it's anticipating its second quarter profit to decline 56% from a year earlier, due to sluggish sales in
[10]
Samsung profit halves amid delays to certification for advanced AI chips
Samsung Electronics's profit has fallen for the first time since 2023, hurt by U.S. curbs on China-bound AI chips and hiccups in its plans to sell cutting-edge memory to Nvidia. South Korea's largest company reported preliminary operating profit of 4.6 trillion won ($3.3 billion) in the June
[11]
US Export Bans And Nvidia Supply Issues Crush Samsung Chip Profits -- Hopes Rest On Ultra-Thin Foldables, Smartwatches And Possible XR Debut At Galaxy Unpacked Event - Samsung Electronics Co (OTC:SSNLF), NVIDIA (NASDAQ:NVDA)
On Tuesday, Samsung Electronics Co. SSNLF reported a sharp 56% drop in second-quarter operating profit, citing U.S. export restrictions on advanced AI chips for China -- a blow to its semiconductor business just days before its major Galaxy Unpacked product launch. What Happened: The South Korean
[12]
Samsung Elec Q2 profit likely to drop 39% on weak AI chip sales
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 chip leader Nvidia. The world's biggest maker of memory chips is projected to report an April to June
[13]
Samsung blames US AI chip curbs for big miss on profits
STORY: Samsung warned Tuesday (July 8) that it is set to miss earnings targets by a wide margin. The South Korean giant projected a 56% plunge in second-quarter operating profit, far worse than expected. Samsung blamed U.S. curbs on the sale of advanced AI chips to China. But analysts said the
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Samsung still lagging behind in the memory chip market
Samsung Electronics expects a 39% drop in operating profit in Q2, amid delays in the delivery of advanced memory chips to Nvidia, the world's leading artificial intelligence chipmaker. In its next report, the South Korean giant is expected to announce operating profit of 6.3 trillion won ($4.62bn)
[15]
Samsung Elec Q2 profit likely to drop 39% on weak AI chip sales
SEOUL (Reuters) -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
[16]
Samsung flags big miss in Q2 profit, citing US AI curbs on China
SEOUL (Reuters) -Samsung Electronics on Tuesday projected a 56% drop in second-quarter operating profit from a year earlier, far worse than analysts expected as its struggling chip business faced U.S. chip curbs on China. The world's largest memory chipmaker blamed the profit miss mainly on its
[17]
Samsung flags big miss in Q2 profit, blames US AI chip curbs on China
SEOUL (Reuters) -Samsung Electronics on Tuesday projected a far worse than expected 56% plunge in second-quarter operating profit due to weak AI chip sales, deepening investor concerns over the tech giant's ability to revive its struggling semiconductor business. The world's biggest memory
[18]
Samsung flags big miss in Q2 profit, citing US AI chip curbs on China
SEOUL (Reuters) -Samsung Electronics on Tuesday projected a 56% drop in second-quarter operating profit from a year earlier, far worse than analysts expected as its sales of artificial intelligence chips slowed in the United States and China. The world's largest memory chipmaker blamed the profit
[19]
Samsung expects a 56% drop in Q2 operating profit, far short of estimates
SEOUL (Reuters) -Samsung Electronics on Tuesday projected a 56% drop in second-quarter operating profit from a year earlier, missing analysts' estimates by far. Its chip business struggled with weak sales of artificial intelligence chips, dogged by delays in the supply of its latest chips to
[20]
Samsung Expects Operating Profit to Halve Amid U.S. Trade Curbs on China, AI Chip Supply Delays -- Update
Samsung Electronics expects its second-quarter operating profit to more than halve from a year earlier, a much sharper drop than market consensus, hurt by U.S. trade curbs on China and its delayed sales of advanced artificial-intelligence chips to Nvidia. The South Korean technology giant
[21]
Samsung Flags Operating Profit Plunge Amid U.S. Trade Curbs, AI Chip Delays -- 2nd Update
Samsung Electronics expects its second-quarter operating profit to more than halve from a year earlier, a much sharper drop than market consensus, hurt by U.S. trade curbs on China and delayed sales of advanced artificial-intelligence chips to Nvidia. The South Korean technology giant attributed
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Samsung Electronics forecasts a 56% drop in Q2 operating profit, facing challenges in AI chip production and US trade restrictions, while competitors benefit from the AI boom.
Samsung's Profit Plunge and AI Chip Challenges
Samsung Electronics, the world's largest memory chipmaker, has projected a significant 56% drop in its second-quarter operating profit for 2025, falling far short of market expectations
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. The company estimates an operating profit of 4.6 trillion won ($3.3 billion) for the April-June period, marking its weakest performance in six quarters and fourth consecutive quarterly decline2
.
Source: Reuters
AI Chip Supply Challenges
A key factor contributing to Samsung's disappointing performance is its struggle to supply advanced high-bandwidth memory (HBM) chips to artificial intelligence leader Nvidia
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. While Samsung has begun supplying its HBM3E chips to AMD and Broadcom, it has yet to secure Nvidia's approval, a critical step for regaining momentum in the fast-growing AI hardware market4
.Competitors Gaining Ground
In contrast to Samsung's struggles, competitors such as SK Hynix and Micron Technology are benefiting from robust demand for HBM chips used in AI applications. SK Hynix, Nvidia's primary supplier, is expecting record quarterly earnings, while Micron has projected stronger-than-expected revenue due to booming HBM demand
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.Impact of US Trade Restrictions
Samsung's performance has been further impacted by US export restrictions on advanced AI chips bound for China. The company's device solutions division, which includes its semiconductor business, reported a quarter-on-quarter decline in profit due to inventory value adjustments and the impact of these restrictions
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.Foundry Business Challenges
Analysts estimate that Samsung lost more than 4 trillion won in foundry operations during the first half of the year. The company has struggled to attract major customers for its contract chip manufacturing business due to poor production yields and a widening technology gap with industry leader TSMC
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Source: FT
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Market Performance and Future Outlook
Samsung's shares have underperformed compared to its competitors, rising just 20% this year, while SK Hynix shares have surged almost 60%
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. Despite the current challenges, analysts expect Samsung's earnings to rebound in the third quarter, with the company's ability to supply HBM chips to Nvidia and overall chip demand recovery being crucial factors5
.Additional Challenges
Samsung faces further headwinds from US tariffs affecting sales of TVs and home appliances, as well as a stronger Korean won eroding its price competitiveness
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. The company is also contending with increased competition from Chinese firms like ChangXin Memory Technologies and Huawei, which are ramping up HBM chip production5
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Source: Fortune
As Samsung navigates these challenges, the tech giant remains under pressure to close the gap with rivals and adapt to an increasingly complex global trade environment. The company is set to report its full second-quarter earnings on July 31, which will provide more detailed insights into its performance across various business segments
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