Samsung Electronics’s profit has fallen for the first time since 2023, hurt by U.S. curbs on China-bound AI chips and hiccups in its plans to sell cutting-edge memory to Nvidia.
South Korea’s largest company reported preliminary operating profit of 4.6 trillion won ($3.3 billion) in the June quarter, a roughly 56% drop from a year ago. Analysts on average had projected a 41% decline. Revenue stood at 74 trillion won.
One-time inventory-related costs contributed to the drop, and customer evaluation and shipments of its advanced memory products are proceeding, Samsung said in a statement. Operating losses in its contract chipmaking business are expected to narrow in the second half of the year on a gradual recovery in demand, Samsung said.
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