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Samsung expects second-quarter profits to more than halve as it struggles to capture AI demand

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Samsung signage during the Nvidia GPU Technology Conference (GTC) in San Jose, California, US, on Thursday, March 20, 2025.

David Paul Morris | Bloomberg | Getty Images

South Korea’s Samsung Electronics on Tuesday forecast a 56% fall in profits for the second quarter as the company struggles to capture demand from artificial intelligence chip leader Nvidia. 

The memory chip and smartphone maker projected operating profit for the quarter ending June to be around 4.6 trillion won, down from 10.44 trillion Korean won year over year.

The figure is a deeper plunge compared to SmartEstimate from LSEG, which is weighted toward forecasts from analysts who are more consistently accurate.

According to LSEG SmartEstimate, Samsung was expected to post an operating profit of 6.26 trillion won ($4.57 billion) for the quarter. Meanwhile, Samsung projected its revenue to hit 74 trillion won, falling short of the LSEG SmartEstimate of 75.55 trillion won.

Shares of Samsung Electronics fell as much as 1.13% in early choppy trade Tuesday following the release of the earning estimates.

Samsung is a leading player in the global smartphone market and also one of the world’s largest makers of memory chips, which are used in devices such as laptops and servers.

The company said in a statement that inventory value adjustments and the impact of U.S. restrictions on advanced AI chips for China had contributed to the decline in profits.

The company has also been falling behind competitors like SK Hynix and Micron in high-bandwidth memory chips — an advanced type of memory that is being deployed in AI chips.

“The disappointing earnings are due to ongoing operating losses in the foundry business, while the upside in the high-margin HBM business remains muted this quarter,” MS Hwang, research director at Counterpoint Research, said about the earnings guidance.

SK Hynix, the leader in HBM, has secured a position as Nvidia’s key supplier. While Samsung has reportedly been working to get the latest version of its HBM chips certified by Nvidia, a report from a local outlet suggests these plans have been pushed back to at least September.

The company declined to comment on the status of its deals with Nvidia, but said that improved HBM products are proceeding with customer evaluation and shipments.

Ray Wang, research director of semiconductors, supply chain and emerging technology at Futurum Group told CNBC that it is clear that Samsung has yet to pass Nvidia’s qualification for its most advanced HBM.

“Given that Nvidia accounts for roughly 70% of global HBM demand, the delay meaningfully caps near-term upside,” Wang said. He noted that while Samsung has secured some HBM supply for AI processors from AMD, this win is unlikely to contribute to second-quarter results due to the timing of production ramps.

Meanwhile, Samsung’s chip foundry business continues to face weak orders and serious competition from Taiwan Semiconductor Manufacturing Company, Wang added.

Reuters reported in September that Samsung had instructed its subsidiaries worldwide to cut 30% of staff in some divisions, citing sources familiar with the matter.

Samsung Electronics’ stock is up over 16% year-to-date, according to LSEG data. The company will release its detailed third-quarter results towards the end of this month.



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Who’s winning the U.S.-China artificial intelligence race? – The Japan Times

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Who’s winning the U.S.-China artificial intelligence race?  The Japan Times



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Artificial intelligence is fueling economic development – Buffalo News

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Artificial intelligence is fueling economic development  Buffalo News



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Samsung Electronics and LG Electronics have launched an artificial intelligence (AI) home at the for..

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Samsung Electronics set up an exhibition hall under the theme of ‘AI Home, Future Daily Life’ at ‘IFA 2025′, Europe’s largest consumer electronics exhibition, to be held in Berlin, Germany from the 5th to the 9th (local time). LG Electronics has set up a space for directing “LG AI Home Appliance Orchestra,” which embodies “LG AI Home,” where various home appliances are connected to each other to upgrade customers’ daily lives. Samsung Electronics and LG Electronics

Samsung Electronics and LG Electronics have launched an artificial intelligence (AI) home at the forefront to target the European market against the challenges of Chinese companies. The two companies unveiled major new products along with AI Home Vision at IFA 2025, Europe’s largest consumer electronics exhibition. Samsung Electronics held a “Samsung Press Conference” in Berlin, Germany, on the 4th (local time), a day before the opening. More than 800 people, including media and partners from around the world, attended the conference held at the City Cube Berlin, the exclusive exhibition hall in “Messe Berlin.”

“In the next three years, 1 billion AI devices will spread to households around the world,” said Kim Chul-ki, head of Samsung Electronics’ DA business division. “The Samsung AI home experience will become a daily life for customers at a fast pace like never before.” In a situation where AI is rapidly spreading to the home, Samsung’s leadership will be maintained.

With home appliance companies connecting smartphones and home appliances into one through various smart home applications, Samsung Electronics’ strategy is to build personalized AI by connecting its smartphone, TV, and home appliance ecosystem. Samsung Electronics aims for Ambient AI, which does not stand out to users, but provides customized experiences in real time by grasping the user’s environment and behavior patterns such as temperature, lighting, sound, and movement.

Typically, in the morning, you can check the weather and schedule through the “Now Brief” installed on your Galaxy smartphone and allow air conditioners and lights in your home to operate on their own according to your usual habits. In addition, through the ‘Family Care’ service, you can take care of your parents who live separately. If there are abnormal signs in the usage patterns of home appliances and smartphones in the house or if the motion is not detected for a certain period of time, a notification is provided to check the safety.

LG Electronics participated in IFA 2025 with the ‘LG AI Home Appliance Orchestra’ at the forefront. In this exhibition, LG Electronics introduced an AI home solution in which “LG ThinQon” connects home appliances, Internet of Things (IoT) devices, and external services to customize and coordinate various living elements of customers.

In everyday situations such as cooking, resting, and camping, “LG ThinQ On” not only controls home appliances and IoT devices in the house, but also demonstrates “ThinkQ Up,” which continues to upgrade new AI functions to existing home appliances with the AI home platform “LG ThinQ AI.” You can also experience services such as ThinkQ Care, which easily manages product conditions such as breakdowns and abnormalities.

In the case of the AI mobility space solution ‘Spilaum’ for vehicles, you can experience ‘LG AI Home’ that crosses your home and vehicle. You can also preheat the light wave oven mounted on the vehicle in the house with “LG ThinQ On,” or check the situation in the house through the home cam in the car and operate the robot cleaner. “IFA 2025 will be the starting point for the European home appliance market to be reorganized into high-efficiency home appliances and AI home solutions,” said Ryu Jae-chul, head of LG Electronics’ HS business division.

A total of 693 Chinese home appliance companies will participate in IFA 2025, accounting for one-third of all participating companies. In particular, TCL and Hisense are aggressively entering the European market with price competitiveness instead of the US, which is difficult to access. Our companies use AI Home as a means of differentiating them from Chinese companies.

[Reporter Lee Deok-ju in Berlin]



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