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Seoul, South Korea — July 7, 2025
Samsung Electronics faces a potential major setback. Analysts predict an increase of 39% in operating profit for the second quarter. Operating earnings are expected to drop down to 6.3 trillion won (about $4.62 billion). The reason for the drop is poor performance in Samsung’s artificial intelligence (AI) chip business.
Despite worldwide enthusiasm for AI technology, Samsung has struggled to meet the growing demand for high-bandwidth memory (HBM) chips. These chips are crucial to powering AI data centers. Analysts say Samsung has had trouble delivering its new HBM3E-12-high chip to key customers like Nvidia. Ongoing quality assurance and performance validation issues have caused these delays.
“Samsung’s delayed certification of its HBM chips has limited its ability to secure major supply deals with leading AI chipmakers,” said an analyst for semiconductors at Daishin Securities. “This has put it at a disadvantage against competitors like SK Hynix.”
While SK Hynix and Micron have successfully supplied HBM processors to the rapidly growing AI market, Samsung has faced technical issues that have postponed the implementation of its memory solutions. Although the company has recently started deliveries to AMD, its AI chip sales are falling short of expectations.
Its performance in the semiconductor division is especially important since it’s the tech giant’s principal source of profit. The blemishes in Q2’s figures are a stark contrast to the recovery that memory companies were hoping for following the downturn last year.
However, Samsung shares have risen about 19% to date in 2025; however, these gains aren’t as impressive as the wider KOSPI index’s 27 percent gain, which is a sign of the current prudence of investors.
Samsung is set to announce its earnings forecast in the coming weeks. Analysts believe the company’s second-half performance depends on how quickly it resolves technical issues. It must also increase HBM supply to key AI clients.
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