By Samsung Electronics’ forecast of a 39% decline in Q2 operating profit highlights its mounting struggle in the AI-driven memory sector. While competitors SK Hynix and Micron have enjoyed momentum, Samsung has lost ground, hampered by both supply delays and regulatory hurdles in China.
Analysts point to Samsung’s hold on HBM3E chip shipments to Nvidia as a critical missed opportunity. Ryu Young-ho of NH Investment & Securities emphasized the flat growth in AI-driven memory revenue. Meanwhile, rival SK Hynix has surged ahead by meeting global AI demand, securing infrastructure across key data centers.
The profit decline also reflects broader market dynamics. Samsung’s previous lead in commodity memory is under threat from Chinese competitors. With U.S. export restrictions curbing access to tier-1 Chinese clients, Samsung’s position is more vulnerable .
However, Samsung has begun supplying the new HBM3E chips to AMD, signaling potential recovery. Its smartphone business has also held firm, supported by pre-tariff orders.
Still, broader trade uncertainties loom large. Proposed tariffs on smartphones and tightened export controls continue to cloud the outlook