Samsung Signage on Thursday, 20 March, 2025 during the NVDia GPU Technology Conference (GTC) at San Jose, California, US.
David Paul Morris | Bloomberg | Getty images
South Korean Samsung Electronics On Tuesday Forecast The company struggles to capture the demand from Artificial Intelligence Chip Leader Nvidia as a 56% decline in profits for the second quarter.
The memory chip and smartphone manufacturer said in its guidance that the operational benefits for the end of June ended around 4.6 trillions, won 10.44 trillion below Korean year to year.
The figure is a deeper dip from LSEG than smart estimates, which are weighted to analysts’ forecasts that are consistently more accurate.
According to smart estimates, Samsung was expected to post the operational benefit of 6.26 trillion vone ($ 4.57 billion). For the quarter. Meanwhile, Samsung estimated its revenue to win 74 trillions, falling below 75.55 trillion’s LSEG smart estimates.
Samsung is a major player in the global smartphone market and is one of the world’s largest manufacturers of memory chips, used in devices such as laptops and servers.
However, the company is falling behind the contestants SK Hinix And Micron In high-bandwidth memory chips-an advanced type of memory which is being deployed in AI chips.
Research Director of Counterpoint Research, Ms. Hwang said, “Disappointing earnings are due to the ongoing operating deficit in the foundry business, while the high-margin HBM is in reverse in the business this quarter.”
SK Hinix, the leading HBM, has obtained a post as a leading supplier of Nvidia. While Samsung is Allegedly Working to achieve the latest version of its HBM chips certified by Nvidia, a report from A Local outlet Suggestions that these schemes have been pushed back by at least September.
The company did not respond to a request to comment on the status of its deals with NVIDIA.
Research Director of Semiconductors, Semiconductors in Future Group, supply chain and research director of Emerging Technology, Ray Wang told CNBC that it is clear that Samsung has passed NVDia’s qualification for its most advanced HBM so far.
Wang said, “Given that NVIDIA is about 70% of the global HBM demand, the delay is nearly near the near-period,” Wang said. He said that when Samsung has achieved some HBM supply to AI processors from AMD, this victory is unlikely to contribute to the second quarter results due to the time of production ramp.
Meanwhile, Samsung’s chip foundry business faces weak orders and serious competition Taiwan semiconductor manufacturing companyWang said.
Roots Informed in September Samsung had instructed its subsidiaries worldwide to cut 30% of employees in some divisions, citing sources familiar with the matter.
According to LSEG data, the stock of Samsung Electronics is about 16% year-to-year. The company will release its detailed third quarter results at the end of this month.
