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Samsung Forecasts 39% Drop in Q2 Profit on AI Memory Delays

Trade restrictions on advanced chips to China are now constraining Samsung’s AI memory revenue.

The logo of Samsung Electronics is seen at the company's store in Seoul, South Korea, April 15, 2025.   REUTERS/Kim Hong-Ji/File Photo
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Overview

  • Samsung’s second-quarter operating profit is projected at 6.3 trillion won ($4.62 billion), down 39% year-on-year and marking its lowest level in six quarters.
  • Revenue from high-bandwidth memory chips held steady as U.S. curbs on advanced-chip exports to China limit sales and the company has yet to start shipments to Nvidia.
  • The firm commenced limited deliveries of its HBM3E 12-layer modules to AMD in June after expecting progress earlier this quarter.
  • Competitors SK Hynix and Micron have outpaced Samsung by meeting surging AI memory demand while Samsung’s China-focused strategy faces restrictions.
  • Samsung’s smartphone division remains strong thanks to pre-tariff inventory stocking, but looming U.S. smartphone tariffs and possible chip-export license revocations pose fresh uncertainties.