Samsung's Q2 Profit Falls 39% Amid AI Chip Delays and Trade Tensions

 

      Summary

• Profit Drop: Samsung Electronics is accepted to report 39% year-over-year decline in Q2 2025 operation profit, down to ₩6.3 trillion ($4.62 billion)—its lowest in six quarters.
• AI Chip delays: The slump is largely due to delays in supplying high bandwidth memory (HBM) chips to Nvidia. Samsung HBM3E have not yet pass Nvidia's certification, limiting shipments. 
• Rival Advantage: Competitors like SK Hynix and Micron have searched ahead in the AI chip market, while Samsung due to the U.S restrict on chip exports to China, a key market for Samsung. 
• Stock Performance: Samsung shares are up 19% in 2025 but still trail the broader KOSPI index, which has risen 27.3%
• Smartphone Sales: Despite chip setbacks, Samsung's smartphone sales remain stable, driven by pre-tariff stockpiling in the U.S.