As Samsung Electronics prepares to announce its financial results for the second quarter of 2025, the company is expected to see a significant decline in its operating profit. According to market analysts, Samsung’s operating profit could fall by 39 percent to around 6.3 trillion won, or $4.62 billion, in the quarter covering the April-June period. This figure could be the lowest revenue level recorded in the last six quarters.

Samsung’s second-quarter earnings to decline

This decline is due to delays and supply problems, especially in memory chips focused on AI. The company is seen to be lagging behind its competitors SK Hynix and Micron in high-bandwidth memory (HBM) chips. Samsung’s slow progress in these chips, which are heavily used in AI-based data centers, is putting pressure on its operating profit.

Samsung’s next-generation 12-layer HBM3E memory chips have not yet completed the approval process by Nvidia. NH Investment & Securities analyst Ryu Young-ho stated that shipments of these chips to Nvidia are not expected to reach a significant volume during the year.

The company stated in March that it aimed to make significant progress in this area by the end of June. However, no official statement was made about the ongoing certification process with Nvidia. In contrast, AMD announced in June that it had procured this new chip from Samsung.

Developments in the Chinese market also have a negative impact on Samsung’s revenues. Chip sales restrictions imposed by the US on China limit Samsung’s revenues from this market. The company’s global competitive position in the field of artificial intelligence chips is also directly affected by these restrictions.

On the smartphone side, there is a relatively more positive outlook. The possibility that the US will impose a 25 percent customs duty on imported phones has created a stock demand that has increased the company’s phone sales. This development was among the factors supporting Samsung’s revenues in the mobile devices category.