Samsung Q1 profit likely down on low AI chip sales, foundry losses, Reuters says

Samsung Electronics (SSNLF) is expected to forecast a 21% drop in Q1 operating profit to approximately 5.2T won, or $3.62B, hurt by sluggish sales of high bandwidth memory chips and continued losses in its contract chip manufacturing business, reports Heekyong Yang of Reuters. The company has reportedly fallen behind rival SK Hynix (HXSCL) in supplying high-performance memory chips for AI leader Nvidia (NVDA). Analysts also noted potential headwinds from U.S. import tariffs impacting Samsung’s mobile and home appliance segments, and suggested its new U.S. factory start-up could be delayed further to 2027. Samsung’s mobile division profit is seen slightly higher year-over-year helped by smartphone shipments and favorable currency exchange.