Samsung's profit recovery seen weakening in Q3

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Samsung's profit recovery seen weakening in Q3

Samsung Electronics is projected to report a significant increase in quarterly profit, driven by rising demand for chips. However, the recovery's momentum is faltering as the company struggles to capitalize on the booming artificial intelligence market. Operating profit is expected to reach 10.33 trillion won, a notable rise from the previous year but relatively stable compared to the last quarter.

The global semiconductor market is rebounding, particularly for AI server chips, yet demand for traditional chips is declining. Samsung faces stiff competition from rivals like SK Hynix and Micron in the high-end AI chip sector, while also contending with challenges in its non-memory chip operations. Analysts warn that Samsung's delayed entry into the AI chip market and its exposure to geopolitical risks could hinder its position as the leading DRAM vendor.

• Samsung's profit recovery is slowing due to AI market challenges.

• Competition from SK Hynix and Micron intensifies in AI chip supply.

Key AI Terms Mentioned in this Article

Artificial Intelligence (AI)

The article discusses how Samsung is lagging in capitalizing on the AI boom compared to its competitors.

DRAM (Dynamic Random Access Memory)

The article highlights concerns that Samsung may lose its status as the top DRAM vendor due to market conditions.

Companies Mentioned in this Article

Samsung Electronics

The company is currently facing challenges in the AI chip market and overall profit recovery.

Micron

Micron is noted for its strong performance in the AI chip sector, contrasting with Samsung's struggles.

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