New smartphone helps Samsung maintain expectations amid AI chip crisis

Samsung's new smartphone launches are helping the company maintain a slight growth momentum, bringing expectations for the second half of the year.

Samsung estimated operating profit in the second quarter at just $3.34 billion, down sharply from $7.56 billion in the same period last year and below the previous quarter's $4.87 billion. Revenue also fell slightly by 0.1% to $53.8 billion.

The main reason is believed to be weak AI chip sales and US restrictions on exporting advanced AI chips to China – a market on which Samsung is more dependent than its rivals.

Samsung's AI chip. (Illustration: Digit)

Profits plummet due to AI chips

Samsung had expected to supply 12-layer HBM 3E chips to Nvidia from June. However, the company has not yet provided any official updates on deliveries, only saying that the products are under evaluation.

Meanwhile, rivals like SK Hynix and Micron were quickly approved by Nvidia and began shipping, capturing global AI memory chip market share.

Samsung's rivals SK Hynix and Micron account for 57% and 16% of the global HBM chip market share, respectively. Samsung has not yet announced its specific market share, which makes investors even more worried.

Samsung said its chip division's profit fell partly due to inventory adjustments, which may include a large amount of unsold HBM chips to Nvidia.

Analysts estimate chip segment profits were only about $363 million, down more than 90% year-on-year.

People shop for Samsung Electronics products at a Samsung store in Seoul, South Korea. (Source: Reuters)

Highlights of the phone array

In contrast to the chip segment, Samsung's phone segment is said to have slightly improved in the second quarter, thanks to newly launched product lines.

However, the long-term outlook remains threatened by potential tariffs from the US and fierce competition, making it difficult to raise prices to maintain profit margins.

Samsung said it would buy back $2.83 billion in shares, part of a $7.27 billion buyback plan announced last November.

The company expects the second half of 2025 to be more positive as demand recovers and plant utilization rates increase. A detailed business results report will be released on July 31.

Minh Hoan

Source: https://vtcnews.vn/smartphone-moi-giup-samsung-giu-vung-ky-vong-giua-khung-hoang-chip-ai-ar953428.html