US EditionSamsung expects a 56% drop in Q2 operating profit, far short of estimates
- Samsung Electronics projected a 56% drop in second-quarter operating profit to 4.6 trillion won, announced on Tuesday in South Korea.
- The profit decline followed weak orders and U.S. export controls limiting advanced AI chip sales to China, complicating Samsung's supply to Nvidia.
- Samsung has not yet met Nvidia’s approval for its most advanced high-bandwidth memory chips, leading to postponed demand as customers await the release of upgraded products.
- Research director Ray Wang noted that since Nvidia represents the majority of worldwide HBM consumption, the delay significantly limits short-term growth potential, while Samsung's foundry segment continues to incur losses.
- Samsung's stock rose about 16% year-to-date despite earnings challenges, and detailed third-quarter results with business breakdowns are expected late this month.
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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.
Coverage Details
Total News Sources35
Leaning Left3Leaning Right4Center10Last UpdatedBias Distribution59% Center
Bias Distribution
- 59% of the sources are Center
59% Center
L 18%
C 59%
R 24%
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