Business
AI for Small Business: HP Workstation Review | HP® Tech Takes < Tech Info
Indonesia’s vibrant entrepreneurial landscape offers tremendous opportunities for small business owners, from tech startups in Jakarta to traditional enterprises across the archipelago. However, Indonesian entrepreneurs face unique challenges managing operations across diverse markets, languages, and regulatory requirements while working 55-60 hours weekly. AI-powered workstation solutions offer the equivalent of a tireless digital workforce, potentially saving up to 20 hours weekly whilst maintaining consistent quality across all business operations.
The Indonesian Small Business Time Crunch: Why AI Matters
Whether you’re managing a team of two in a Jakarta co-working space or two hundred employees across multiple islands, administrative burdens can quickly consume time better spent on strategic growth and customer relationships. Indonesian small business owners routinely find themselves overwhelmed by processing complex invoicing requirements across different provinces, organising receipts and managing bookkeeping with varying local regulations, and monitoring employee time cards whilst calculating payroll accurately.
Beyond these financial responsibilities, entrepreneurs spend countless hours maintaining inventory and managing supply chains across Indonesia’s vast geography, creating marketing content in Bahasa Indonesia and English to reach diverse audiences, and responding to customer inquiries across various digital platforms popular in Southeast Asia. The constant juggling of these tasks leaves little time for the strategic thinking and relationship building that actually drives business growth.
Modern HP workstations represent a new generation of AI-enhanced tools designed specifically for these challenges. These powerful devices integrate advanced machine learning capabilities that transform how Indonesian entrepreneurs manage their daily operations, offering intelligent solutions that learn from your business patterns and adapt to your specific needs across Indonesia’s diverse business environment.
The Competitive Necessity of AI Adoption in Indonesia
In Indonesia’s rapidly evolving business landscape, AI implementation isn’t just advantageous—it’s becoming essential for remaining competitive. Companies that leverage AI tools can operate more efficiently, make data-driven decisions faster, and provide more responsive customer service across Indonesia’s diverse market segments from Sumatra to Papua. The entrepreneurs who resist this technological shift often find themselves spending increasingly more time on routine tasks whilst their AI-savvy competitors focus on growth and innovation.
According to recent surveys of Southeast Asian small businesses, entrepreneurs who implement AI tools report gaining an average of 15-25 hours per month in productivity—equivalent to nearly two additional workdays that can be invested in business growth and customer relationships. This isn’t just about working faster; it’s about working smarter and reclaiming the mental bandwidth needed for strategic thinking in Indonesia’s dynamic market environment.
High-performance business desktops essentially function as multiple always-on employees who learn your communication style and business processes, ensuring consistent brand voice and quality across all customer touchpoints—whether you’re serving customers in Jakarta, Surabaya, or Medan. Unlike human employees, these AI assistants never take sick days, don’t require training on company policies, and maintain the same level of quality and attention to detail around the clock.
Administrative Tasks: Save 5+ Hours Weekly
Administrative work forms the backbone of any Indonesian business but often consumes disproportionate time without directly generating revenue. The mundane yet essential tasks of data entry, document management, and routine communications can easily consume entire days, leaving entrepreneurs feeling like they’re constantly playing catch-up rather than moving their businesses forward across Indonesia’s complex regulatory landscape.
Modern HP workstations can automate many of these processes, freeing up approximately 5 hours weekly for more strategic activities. Email management becomes revolutionary when you can implement smart filtration systems that automatically categorise incoming messages by priority, sender, or content type. Instead of manually sorting through hundreds of emails daily, you can focus on the messages that truly require your personal attention whilst AI-generated responses handle frequently asked questions in both Bahasa Indonesia and English.
Document automation represents another significant time-saver for Indonesian businesses. Rather than manually extracting information from forms and typing it into spreadsheets or databases, intelligent systems can process these documents automatically. Invoice generation becomes seamless when client data is automatically inserted along with proper tax calculations for different Indonesian provinces, whilst inventory tracking systems monitor stock levels across multiple locations and generate alerts when supplies run low.
The HP ZBook Power 15.6 inch G10 A Mobile Workstation PC Wolf Pro Security Edition exemplifies professional-grade computing power designed for demanding business applications. This workstation combines AMD Ryzen™ 7 PRO processor performance with NVIDIA RTX™ A1000 graphics, delivering the processing power needed for intensive AI applications whilst maintaining the mobility essential for Indonesian business operations across multiple locations.
Meeting enhancement features prove particularly valuable for businesses managing remote teams or client relationships across Indonesia’s vast geography. Your HP workstation can proactively monitor connections to prevent mid-meeting disruptions during video conferences, automatically detect software issues before they cause problems, and manage notifications intelligently during presentations. Perhaps most impressively, these systems can automatically transcribe and summarise virtual meetings, then distribute key points to participants—eliminating the need for manual note-taking whilst ensuring nothing important slips through the cracks.
Customer Service: Save 5+ Hours Weekly
Customer relationship management often requires constant attention in Indonesia’s service-oriented business culture, yet represents another area where AI can dramatically reduce time investment whilst potentially improving service quality across diverse customer segments. The challenge isn’t just responding to customers quickly—it’s maintaining consistent quality and personalisation across multiple languages, cultural contexts, and communication channels popular throughout Southeast Asia.
Modern AI-powered customer engagement systems can provide 24/7 support through intelligent chatbots that handle basic questions, appointment scheduling, and product information in both Bahasa Indonesia and English. These systems learn from each interaction, becoming increasingly sophisticated at providing personalised responses based on customer history, preferences, and regional requirements specific to different Indonesian markets. The result is consistent service quality across email, chat, WhatsApp, and social media platforms popular in Indonesia, without requiring human intervention for routine inquiries.
The HP ZBook Firefly 14 inch G10 Mobile Workstation PC Wolf Pro Security Edition provides professional mobility for entrepreneurs who need to maintain customer service excellence whilst travelling across Indonesia’s diverse business landscape. Its Intel® Core™ i7 processor and NVIDIA RTX™ A500 graphics deliver reliable performance for customer management applications, whilst the 14-inch diagonal display ensures clear visibility for video calls and presentations.
Automated customer journey management takes this efficiency further by creating intelligent email sequences that nurture customer relationships after purchases, accounting for Indonesian cultural events and local buying patterns. Rather than manually tracking when to send renewal reminders or replenishment suggestions, these systems understand your business cycles and customer behaviours, timing communications for maximum effectiveness whilst maintaining cultural sensitivity appropriate for Indonesian consumers.
The real power of HP workstations in customer service lies in their ability to process vast amounts of customer interaction data to identify patterns in satisfaction metrics across different Indonesian regions, flag potential service issues before they escalate during peak business periods, and recognise opportunities for upselling or cross-selling based on actual Indonesian consumer behaviour rather than generic assumptions.
Marketing and Sales: Save 5+ Hours Weekly
Marketing efforts often consume significant entrepreneurial bandwidth in Indonesia’s competitive landscape, particularly when businesses need to reach diverse audiences across multiple languages, cultural contexts, and digital platforms. Creating compelling content, managing social media presence, and nurturing sales leads can easily consume entire days without guaranteeing results across Indonesia’s varied market segments.
HP’s powerful workstation solutions offer AI-enhanced features specifically designed to streamline content creation and campaign management for Indonesian businesses. Content creation acceleration becomes possible when AI can produce blog posts, social media updates, and email newsletters with guided assistance tailored specifically for Indonesian audiences, understanding cultural nuances and local preferences that generic tools often miss.
Visual content enhancement happens automatically, with systems that resize, optimise, and enhance images for different platforms popular in Indonesia whilst maintaining brand consistency across diverse marketing channels. Content calendar management becomes effortless when you can schedule and distribute content across multiple channels from a single dashboard, automatically accounting for Indonesian holidays, cultural events, and regional preferences that could impact engagement across different provinces.
Video marketing optimisation represents a particular strength of modern HP workstations, with advanced AI features that automatically adjust lighting for perfect video quality regardless of environmental conditions in Indonesian offices. Smart background management creates professional-looking videos anywhere, whilst audio enhancement filters background noise and prioritises voice clarity—essential for creating multilingual content that resonates with diverse Indonesian audiences from urban centres to rural markets.
Sales process automation transforms how businesses identify and nurture potential customers across Indonesia’s complex market landscape. Instead of manually evaluating prospects, AI systems can automatically score leads based on engagement patterns and Indonesian market dynamics, helping sales teams focus their efforts where they’re most likely to succeed. Proposal generation becomes streamlined when systems can create customised proposals with minimal manual input, automatically incorporating tax calculations and local business requirements that vary across Indonesian provinces.
PRODUCTIVITY HACK: Use your HP workstation’s AI capabilities to analyse your highest-performing marketing content for the Indonesian market, then generate variations that maintain the same successful elements—essentially cloning your best work without duplicating effort whilst respecting cultural nuances and regional preferences that make content truly effective across Indonesia’s diverse consumer base.
Financial Management: Save 5+ Hours Weekly
Perhaps no area creates more stress for Indonesian small business owners than financial management, particularly given Indonesia’s complex tax structure and constantly evolving regulatory requirements. The combination of multiple tax rates, compliance deadlines, and detailed record-keeping requirements can transform what should be straightforward bookkeeping into a time-consuming nightmare that distracts from core business activities.
Professional business laptops can transform these time-consuming tasks into streamlined, accurate processes that actually improve financial visibility and control. Automated bookkeeping systems can scan and categorise receipts automatically with proper tax classification, monitor spending patterns across business categories with Indonesian tax considerations built in, and generate professional financial statements that comply with Indonesian accounting standards without requiring manual formatting or calculation.
Predictive financial intelligence represents a game-changing capability for Indonesian businesses. Rather than simply tracking what has happened, modern AI systems can predict upcoming financial positions based on historical patterns and seasonal Indonesian business cycles. Revenue projections become data-driven rather than guesswork, accounting for monsoon seasons, holiday periods, and regional economic factors that significantly impact business performance across different parts of Indonesia.
Budget optimisation through AI-powered suggestions can identify cost-saving opportunities specific to the Indonesian market, taking into account local supplier networks, seasonal pricing variations, and regional economic conditions that generic financial software often overlooks. Payroll automation ensures wages, taxes, and benefits are calculated accurately according to Indonesian labour laws, whilst tax compliance features organise documentation for smoother filing and help businesses stay updated on changing regulations across Indonesian provinces.
HP’s Workstation Solutions: Technical Review and Implementation Guide for Indonesian Businesses
HP’s workstation solutions represent strategic investments that quickly pay dividends through time savings and enhanced capabilities for Indonesian entrepreneurs. These aren’t just faster computers—they’re comprehensive productivity platforms that combine hardware optimised for AI workloads with software ecosystems designed specifically for the complex requirements of modern Indonesian businesses.
The HP Z2 Tower G9 Workstation provides enterprise-grade performance for Indonesian businesses requiring maximum computing power. With its Intel® Core™ i7 processor, NVIDIA® Quadro® T1000 graphics, and 16 GB memory paired with hybrid storage combining 1TB HDD and 256 GB SSD, this workstation handles demanding AI applications whilst maintaining the reliability essential for business-critical operations across Indonesia’s diverse market landscape.
For entrepreneurs who need desktop performance with maximum reliability, the HP Z2 Tower represents professional-grade computing designed specifically for intensive business applications. The powerful processor ensures smooth performance when running multiple AI applications simultaneously, whilst the generous memory handles demanding tasks like video conferencing, document processing, and data analysis without slowdowns that could disrupt critical business operations.
Software integration represents a crucial advantage of HP workstations, with seamless compatibility with Microsoft Office Suite for enhanced productivity through AI assistance, HP Support Assistant for proactive system maintenance and optimisation, advanced security solutions for protecting sensitive business data, and compatibility with leading business automation platforms used throughout Indonesia and Southeast Asia.
Complementing your workstation setup with HP’s comprehensive business solutions creates a complete productivity ecosystem. HP monitors provide high-quality displays that enhance productivity and create impressive presentations for clients, whilst HP accessories offer essential peripherals including mice, keyboards, and productivity tools that enhance daily operations for Indonesian business environments.
Success Stories: Indonesian Businesses Transforming with HP AI Solutions
The real proof of AI’s impact comes from actual Indonesian businesses that have successfully implemented these solutions. E-commerce businesses using HP workstations report significant improvements in inventory management, with AI systems processing thousands of product listings automatically whilst maintaining accuracy across multiple marketplaces popular in Southeast Asia. Customer service response times have improved dramatically, with businesses handling five times more inquiries without increasing staff, whilst marketing campaign effectiveness has increased through AI-powered audience targeting and content optimisation tailored for Indonesian consumers.
Professional services firms across Indonesian business centres have discovered that HP workstation-powered AI solutions can automate client communication, document preparation, and project management tasks that previously consumed entire days. Consulting firms now generate client reports automatically, accounting practices process tax returns with minimal human intervention, and legal services create contracts and agreements using AI-powered templates that ensure compliance with local regulations whilst maintaining personalisation for each client.
Manufacturing and supply chain businesses in industrial areas throughout Indonesia leverage HP workstations to optimise complex logistics networks across the archipelago, predict maintenance requirements before equipment failures occur, and improve quality control processes through AI-powered analytics that identify potential issues long before they become costly problems. These implementations demonstrate that AI isn’t just about automation—it’s about intelligence that improves decision-making across every aspect of business operations in Indonesia’s complex market environment.
Investment Considerations for Indonesian Small Businesses
When evaluating HP workstation investments, Indonesian businesses must consider the total cost of ownership beyond the initial hardware purchase. Premium workstations provide exceptional long-term value through durability and performance that maintains effectiveness over years of intensive use in Indonesia’s demanding business environment. Software licensing costs for AI applications and productivity software should be factored into the budget, along with training and implementation expenses to ensure teams can maximise the technology’s potential.
HP’s comprehensive support network across Indonesia ensures minimal downtime, with local service centres and technical support available in regional languages. This support infrastructure represents significant value for businesses that cannot afford extended periods of reduced productivity due to technical issues across Indonesia’s geographically diverse business landscape.
For a typical Indonesian small business owner, saving 20 hours weekly through AI automation represents immediate value equivalent to 2.5 additional working days per week. This time can be reinvested in revenue-generating activities, business development, or strategic planning that drives long-term growth across Indonesia’s expanding economy. The cost reduction from decreased need for additional administrative staff, combined with competitive advantages from faster response times and more professional operations, often justifies the investment within the first year of implementation.
Getting Started: Your HP AI Implementation Journey
Successful AI implementation requires a structured approach that builds capabilities gradually whilst ensuring each phase delivers measurable benefits for Indonesian businesses. The foundation setup phase involves purchasing your HP workstation and configuring essential business applications and AI tools alongside basic automation for email and document management. This initial setup typically takes one to two weeks but immediately begins delivering time savings that benefit Indonesian business operations.
Customer service enhancement follows, with implementation of chatbot solutions for websites, automated customer follow-up sequences, and multilingual support configurations that serve diverse Indonesian customer bases across different regions and cultural contexts. Marketing and sales automation builds on this foundation by deploying content creation AI tools, automating social media scheduling and posting, and setting up lead scoring systems alongside customer relationship management automation tailored for Indonesian market dynamics.
Advanced financial management represents the most complex implementation phase, involving automated bookkeeping and expense tracking, tax compliance and reporting automation specific to Indonesian requirements, and predictive analytics configuration for business forecasting that accounts for regional economic factors. The final optimisation and scaling phase monitors time savings and productivity improvements whilst gradually expanding AI implementation to additional business areas and training team members on new workflows and enhanced capabilities.
Maximising workstation productivity requires strategic selection of supporting accessories from HP’s comprehensive range. The complete HP accessories collection provides essential mice, keyboards, and productivity tools that enhance daily operations, whilst professional display solutions enable enhanced multitasking capabilities essential for managing complex Indonesian business operations across multiple applications and communication channels.
The Future of AI in Indonesian Small Business
Looking ahead, the integration of AI technology in Indonesian small businesses will only deepen as the technology becomes more sophisticated and accessible across Southeast Asia. Emerging AI capabilities promise even greater time savings through advanced natural language processing in Bahasa Indonesia, predictive analytics that can forecast market trends with unprecedented accuracy across different Indonesian regions, and automation systems that can handle increasingly complex business processes specific to Indonesian market requirements.
The businesses that invest in AI infrastructure today, particularly through robust platforms like HP workstations, position themselves to take advantage of these evolving capabilities as they become available across Indonesian markets. Rather than scrambling to catch up with technological advances, early adopters can build upon their existing AI foundations to implement new features and capabilities seamlessly whilst maintaining competitive advantages in Indonesia’s rapidly evolving business landscape.
For Indonesian entrepreneurs, this represents an opportunity to not just compete with larger organisations but to potentially outmanoeuvre them through superior efficiency and responsiveness. Small businesses with well-implemented AI systems can often move faster and adapt more quickly than larger corporations burdened by complex approval processes and legacy systems, particularly in Indonesia’s dynamic market environment where agility often determines success.
Conclusion: The Competitive Advantage of Time for Indonesian Businesses
The time-saving capabilities of HP’s workstations can recover more than 20 hours weekly for the average Indonesian small business owner, representing far more than improved work-life balance. This reclaimed time becomes a significant competitive advantage in Indonesia’s fast-paced business environment, providing strategic focus for big-picture thinking and growth planning within Indonesia’s expanding economy, enhanced capacity for nurturing high-value client connections across diverse Indonesian markets, and mental space for developing innovative products and services tailored specifically for Indonesian consumers across different regions and cultural contexts.
Perhaps most importantly, these time savings reduce burnout risk and improve business longevity in Indonesia’s demanding entrepreneurial landscape. The AI revolution in Indonesian small businesses represents a fundamental shift in how entrepreneurs can allocate their most precious resource: attention. By leveraging HP’s workstations, Indonesian small business owners can escape the administrative quicksand that traditionally consumes their days, focusing instead on building relationships, serving customers, and growing enterprises that contribute meaningfully to Indonesia’s economic development.
The entrepreneurs who embrace these technologies today position themselves optimally to capitalise on Indonesia’s continued economic growth and digital transformation across Southeast Asia. When combined with the time-saving capabilities discussed throughout this review, HP workstations offer Indonesian small business owners the tools needed to not just survive but thrive in an increasingly competitive marketplace that spans thousands of islands and diverse cultural markets.
The question isn’t whether AI will transform Indonesian small businesses—it’s how quickly entrepreneurs can implement these tools to gain competitive advantages across Indonesia’s dynamic economy. For businesses ready to embrace the future of productivity, HP’s comprehensive workstation solutions provide the foundation for building more efficient, responsive, and sustainable enterprises that can compete effectively in Indonesia’s complex and rapidly evolving business environment.
When you’re ready to transform your business operations and join the ranks of successful Indonesian entrepreneurs leveraging AI for competitive advantage, HP’s workstation solutions provide the ideal foundation for this transformation. The future belongs to businesses that can operate smarter rather than simply harder, and with HP’s AI-powered workstations, that future is available today for Indonesian entrepreneurs ready to embrace the next generation of business productivity and growth across Southeast Asia’s most dynamic economy.
Business
Company Turns To AI For Cost Cutting, Ends Up Paying US Woman Rs 1.7 Lakh To Fix Errors
“Maybe I’m being naive, but I think if you are very good, you won’t have trouble,” she expressed her views about concerns around AI. According to Skidd, AI can be an excellent tool when used correctly. Like her, there are many writers who are earning by fixing AI-generated content.
A digital marketing agency co-owner, Sophie Warner, shared a similar experience, noting how her clients were using ChatGPT for their issues first.
“Earlier, clients would message us if they were having issues with their site or wanted to introduce new functionality,” Warner said. “Now they are going to ChatGPT first.”
She said clients using ChatGPT for website code had reported issues. These include sites crashing down or leaving them vulnerable to hackers. She revealed that such a move cost one of her clients £360 (Rs 42,000) and three days of service disruption, the BBC report added.
Similar instances have occurred in the past where businesses trying to cut costs with AI have ended up paying more. In June, a Swedish fintech company, Klarna, made headlines for a similar incident. The company announced that it was organising a large-scale recruitment drive to hire staff again, two years after firing more than 700 employees to replace them with AI.
Business
AI video becomes more convincing, rattling creative industry
[NEW YORK] Gone are the days of six-fingered hands or distorted faces – artificial intelligence (AI)-generated video is becoming increasingly convincing, attracting Hollywood, artists, and advertisers, while shaking the foundations of the creative industry.
To measure the progress of AI video, you need only look at Will Smith eating spaghetti.
Since 2023, this unlikely sequence – entirely fabricated – has become a technological benchmark for the industry.
Two years ago, the actor appeared blurry, his eyes too far apart, his forehead exaggeratedly protruding, his movements jerky, and the spaghetti did not even reach his mouth.
The version published a few weeks ago by a user of Google’s Veo 3 platform showed no apparent flaws whatsoever.
“Every week, sometimes every day, a different one comes out that’s even more stunning than the next,” said Elizabeth Strickler, a professor at Georgia State University.
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Between Luma Labs’ Dream Machine, launched in June 2024, OpenAI’s Sora in December, Runway AI’s Gen-4 in March 2025, and Veo 3 in May, the sector has crossed several milestones in just a few months.
Runway has signed deals with Lionsgate studio and AMC Networks television group.
Lionsgate vice-president Michael Burns told New York Magazine about the possibility of using AI to generate animated, family-friendly versions from films such as the John Wick or Hunger Games franchises, rather than creating entirely new projects.
“Some use it for storyboarding or previsualization” – steps that come before filming – “others for visual effects or inserts”, said Jamie Umpherson, Runway’s creative director.
Burns gave the example of a script for which Lionsgate has to decide whether to shoot a scene or not.
To help make that decision, they can now create a 10-second clip “with 10,000 soldiers in a snowstorm”.
That kind of pre-visualisation would have cost millions before.
In October, the first AI feature film was released, Where the Robots Grow, an animated film without anything resembling live action footage.
For Alejandro Matamala Ortiz, Runway’s co-founder, an AI-generated feature film is not the end goal, but a way of demonstrating to a production team that “this is possible”.
Resistance everywhere
Still, some see an opportunity.
In March, startup Staircase Studio made waves by announcing plans to produce seven to eight films per year using AI for less than US$500,000 each, while ensuring it would rely on unionised professionals wherever possible.
“The market is there,” said Andrew White, co-founder of small production house Indie Studios.
People “don’t want to talk about how it’s made”, White pointed out. “That’s inside baseball. People want to enjoy the movie because of the movie.”
But White himself refuses to adopt the technology, considering that using AI would compromise his creative process.
Jamie Umpherson argues that AI allows creators to stick closer to their artistic vision than ever before, since it enables unlimited revisions, unlike the traditional system constrained by costs.
“I see resistance everywhere” to this movement, observed Georgia State’s Strickler.
This is particularly true among her students, who are concerned about AI’s massive energy and water consumption as well as the use of original works to train models, not to mention the social impact.
But refusing to accept the shift is “kind of like having a business without having the internet”, she said. “You can try for a little while.”
In 2023, the American actors’ union SAG-AFTRA secured concessions on the use of their image through AI.
Strickler sees AI diminishing Hollywood’s role as the arbiter of creation and taste, instead allowing more artists and creators to reach a significant audience.
Runway’s founders, who are as much trained artists as they are computer scientists, have gained an edge over their AI video rivals in film, television, and advertising.
But they are already looking further ahead, considering expansion into augmented reality and virtual reality, for example, creating a metaverse where films could be shot.
“The most exciting applications aren’t necessarily the ones that we have in mind,” said Umpherson. “The ultimate goal is to see what artists do with technology.” AFP
Business
Samsung warns of big profit miss from US restrictions on advanced AI chip exports
Semiconductor and smartphone giant Samsung Electronic Co. Ltd. said on Tuesday morning in South Korea that it’s anticipating its second-quarter profit to plunge 56% from a year earlier, blaming it on sluggish sales in its chip business and the impacts of U.S. trade restrictions.
The forecast comes in much lower than what analysts had expected. Samsung said in a preliminary earnings statement that it’s expecting a second-quarter operating profit of 4.59 trillion won ($3.4 billion), down sharply from the 10.44 trillion won profit it posted in the year-ago period. Analysts had been targeting a profit of 6.2 trillion won, Reuters reported.
On a sequential basis, Samsung’s profit is expected to drop by around 31%, from 6.69 trillion won. Revenue for the period is expected to come to 74 trillion won, more or less flat from a year earlier.
In a separate press release issued to South Korean media, Samsung blamed the unexpected decline in profit on inventory replacements and the negative impact of the United States’ expanded sanctions on the export of advanced artificial intelligence processors to China.
“The memory business saw a decline in performance due to one-off costs, such as provisions for inventory asset valuation,” the company said. “However, improved HBM products are currently being evaluated and shipped to customers.”
Samsung was referring to its High-Bandwidth Memory chips, which are a critical component of AI processors. The company has struggled to match the progress of its rival memory chipmaker SK Hynix Inc., which currently provides the vast majority of HBM chips to Nvidia Corp. for use in that company’s graphics processing units.
However, Samsung said it expects to see a sharp increase in HBM chip sales to Nvidia in the upcoming quarter, despite recent reports that its products have not yet passed the AI chip leader’s quality tests. It also said its non-memory chipmaking foundry is expected to reduce its losses in the third quarter due to improved utilization rates and a recovery in global chip demand.
Analysts said Samsung’s profits were also hit by a decline in NAND flash prices and a stronger Korean won, and its stock was down 1% in early morning trading in Korea.
Holger Mueller of Constellation Research Inc. told SiliconANGLE it’s notable that Samsung is still growing its chip business, despite not being able to grow its profit. “The most critical challenge is for Samsung to be able to deliver its HBM chips, and if it can do this it will likely show stellar results like its competitors, given the insane hunger for AI chips,” the analyst said.
According to Mueller, investors will be happy to hear that Samsung believes it will soon be able to deliver a significant number of HBM chips to Nvidia, which is the most important customer. If it does do this, it could well see growth of the kind that it hasn’t enjoyed in years.
“But another challenge for Samsung is its smartphone business, which is also struggling right now,” Mueller added. “The flywheel will only come back and deliver as it used to once both of these businesses have strong offerings. Samsung will also need to demonstrate strong execution in production and on the go-to-market side.”
Samsung has not yet disclosed detailed earnings regarding the performance of its individual business units, but analysts estimate that its semiconductor business will deliver an operating profit of around 1 trillion won, based on the company’s preliminary forecast.
The company is also unlikely to see much benefit from the launch of its new flagship smartphone, the AI-powered Galaxy S25, in January. Meanwhile, its television and home appliance businesses are also expected to see a drop in profitability, due partly to the impact of U.S. tariffs on imports.
Although the report was disappointing for investors, Hyundai Motor Securities Co. analyst Roh Geun-chang said the company’s profit is likely to rebound in the third quarter, driven by an expected increase in memory chip prices. “Samsung’s operating profit appears to have bottomed out in the second quarter and is expected to show gradual improvement,” the analyst told Yonhap.
Image: SiliconANGLE/Dreamina
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