US EditionSamsung expects a 56% drop in Q2 operating profit, far short of estimates
SOUTH KOREA, JUL 7 – Samsung Electronics forecasts operating profit of 4.6 trillion won for Q2, a 56% decline due to weak AI chip demand and delays in high-bandwidth memory chip certification by Nvidia.
- Samsung Electronics projected a 56% drop in second-quarter operating profit to 4.6 trillion won on July 8, 2025, citing challenges in its chip businesses.
- The decline is attributed to inventory adjustments, limitations imposed by U.S. export controls on sophisticated AI chip sales to China, sluggish foundry demand, and delays in certifying high-bandwidth memory chips for Nvidia.
- Samsung’s improved HBM products are under customer evaluation while clients defer demand ahead of a planned enhanced HBM launch, and AMD sources some HBM from Samsung despite Nvidia delays.
- Ray Wang said to CNBC that Nvidia accounts for about 70% of global HBM demand and Samsung’s delay “meaningfully caps near-term upside,” limiting revenue prospects for this quarter.
- Samsung anticipates a gradual improvement in earnings during the third quarter, driven by increased HBM sales to customers beyond Nvidia and the launch of new smartphones, with comprehensive Q3 results expected later this month.
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Samsung faces 56% profit decline in Q2, struggles with AI demand
Samsung Electronics has projected a 56% decline in operating profits for the second quarter, reflecting challenges in capturing the growing demand for artificial intelligence (AI) chips. The South Korean giant, a leading player in the memory chip and smartphone markets, expects its operating profit for the quarter ending June to be around 4.6 trillion won (approximately $3.5 billion), a significant drop from 10.44 trillion won in the same period…
South Korean giant Samsung Electronics said on Tuesday he expected a 56% drop in its operating profit over a year in the second quarter.
The South Korean technology group Samsung reflects the problems in the chip sector in terms of profit. This is more than half lower in the second quarter. US export bans against China also play a role.
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