Samsung Q4 earnings expected to be hit by Nvidia AI chip supply delay

Seoul: So, it looks like Samsung is in a bit of a pickle. They’re the top memory chip maker in the world, but their earnings for the fourth quarter are expected to take a hit. Why? Well, they’re struggling to keep up with Nvidia’s huge demand for AI chips.

Analysts are saying Samsung might report an operating profit of around 8.2 trillion won, which sounds good compared to last year’s 2.8 trillion won. But it’s actually down from 9.18 trillion won just the quarter before. Some experts are even worried it could dip below 8 trillion won.

Back in October, Samsung had to apologize for a disappointing third quarter and mentioned they were working on supplying Nvidia with those AI chips. But since then, there hasn’t been much good news, and delays are still affecting their earnings.

In a shake-up, Samsung replaced some top execs in their chip division and made the chip division chief a co-CEO. They’re hoping this will help turn things around. Meanwhile, their shares took a nosedive last year, dropping 32%, while the market overall only lost about 10%.

On the flip side, SK Hynix, another big player in the chip game, is expected to post record earnings for the same quarter.

Chip prices are under pressure too, thanks to weak demand for traditional chips and increased competition from Chinese companies. Even Micron Technology, a U.S. chipmaker, is feeling the heat, forecasting lower revenue and profit.

Prices for DDR4 DRAM chips have dropped significantly, and it looks like they’ll keep falling. This is a tough spot for Samsung, especially with the South Korean won hitting its lowest point in 15 years due to political issues and potential tariffs from the U.S.

Samsung’s logic chip business isn’t doing great either, which is expected to keep dragging down their overall chip earnings. They’re set to announce their fourth-quarter revenue and profit estimates soon, with more detailed results coming later in January.