The figure is a deeper plunge compared to smart estimates from LSEG. Samsung also jected its revenue to hit 74 trillion won, falling short of LSEG smart estimates of 75. 55 trillion won.
The company has been falling behind competitors SK Hynix and Micron in high-bandwidth memory chips.
Samsung signage during the Nvidia GPU nology Conference (GTC) in San Jose, California, US, on Thursday, March 20, 2025.
David Paul Morris | Bloomberg | Getty ImagesSouth Korea's Samsung Electronics on Tuesday forecast a 56% fall in fits for the second quarter as the company struggles to capture demand from artificial intelligence chip leader Nvidia.
The memory chip and smartphone maker jected operating fit for the quarter ending June to be around 4. 6 trillion won, down from 10. 44 trillion Korean won year over year.
The figure is a deeper plunge compared to SmartEstimate from LSEG, which is weighted toward forecasts from analysts who are more consistently accurate.
According to LSEG SmartEstimate, Samsung was expected to post an operating fit of 6. 26 trillion won ($4. 57 billion) for the quarter.
Meanwhile, Samsung jected its revenue to hit 74 trillion won, falling short of the LSEG SmartEstimate of 75. 55 trillion won. S of Samsung Electronics fell as much as 1.
13% in early choppy trade Tuesday ing the release of the earning estimates.
Samsung is a leading player in the global smartphone market and also one of the world's largest makers of memory chips, which are used in devices such as laptops and servers.
The company said in a statement that inventory value adjustments and the impact of U. Restrictions on advanced AI chips for China had contributed to the decline in fits.
The company has also been falling behind competitors SK Hynix and Micron in high-bandwidth memory chips — an advanced type of memory that is being deployed in AI chips.
"The disappointing earnings are due to operating losses in the foundry, while the upside in the high-margin HBM remains muted this quarter," MS Hwang, re director at Counterpoint Re, said the earnings guidance.
SK Hynix, the leader in HBM, has secured a position as Nvidia's key supplier.
While Samsung has reportedly been working to get the version of its HBM chips certified by Nvidia, a report from a local outlet suggests these plans have been pushed back to at least September.
The company declined to on the of its deals with Nvidia, but said that imved HBM ducts are ceeding with customer evaluation and shipments.
Ray Wang, re director of semiconductors, supply chain and emerging nology at Futurum Group told CNBC that it is that Samsung has yet to pass Nvidia's qualification for its most advanced HBM.
"Given that Nvidia accounts for roughly 70% of global HBM demand, the delay meaningfully caps near-term upside," Wang said.
He noted that while Samsung has secured some HBM supply for AI cessors from AMD, this win is unly to contribute to second-quarter results due to the timing of duction ramps.
Meanwhile, Samsung's chip foundry continues to face weak orders and serious competition from Taiwan Semiconductor Manufacturing Company, Wang added.
Reuters reported in September that Samsung had instructed its subsidiaries worldwide to cut 30% of staff in some divisions, citing sources familiar with the matter.
Samsung Electronics' stock is up over 16% year-to-date, according to LSEG data. The company will release its detailed third-quarter results towards the end of this month.