South Korea's Samsung Electronics said on Wednesday it expected fourth-quarter profits to be sharply down compared with the previous quarter, falling short of expectations as the company struggled to meet robust demand for chips used in artificial intelligence servers.

Samsung Electronics reported an operating profit of approximately 6.5 trillion won ($4.4 billion) for the fourth quarter of 2024, significantly below analysts’ earlier projections of $5.8 billion. This marks a steep decline from the $8.

Nvidia CEO says Samsung needs to redesign HBM, but expresses confidence in firm's success Samsung Electronics on Wednesday estimated more than a twofold increase in its fourth quarter operating profit compared to the same period last year,

Samsung Electronics released on Wednesday a fourth-quarter operating profit estimate that missed analyst estimates by a large margin, as it lagged behind rival SK Hynix in supplying high-end chips to Nvidia.

The world’s largest maker of memory chips and smartphones said sluggish demand for conventional chips used in personal computers and mobile phones weighed on its memory business for the quarter.

Samsung Electronics Co.’s shares rose after Nvidia Corp. founder Jensen Huang expressed confidence in the Korean company’s ability to resolve technical issues dogging its highest-end memory, offsetting disappointing quarterly results.

Samsung Electronics estimated on Wednesday a 131% jump in fourth-quarter operating profit from a year earlier but missed analyst estimates by a large margin as it lagged behind rival SK Hynix in supplying high-end chips to Nvidia.

Samsung Electronics said today that it’s likely to miss expectations on fourth-quarter profit by a wide margin, as analysts blamed the miss on the poor performance of its high-end memory chips for artificial intelligence accelerators.