AsianFin -- Samsung Electronics is expected to post a 39% decline in second-quarter operating profit on Tuesday, hurt by slower-than-expected shipments of advanced memory chips to AI chip leader Nvidia.

The South Korean tech giant is projected to report operating income of 6.3 trillion won ($4.62 billion) for the April-June period, according to LSEG SmartEstimate — its weakest quarterly result in a year and a half.

The anticipated drop underscores mounting investor concerns over Samsung’s lag in the race to supply high-bandwidth memory (HBM) chips, which are critical components in data centers powering artificial intelligence applications.

While rivals SK Hynix and Micron have seen revenue surge on the back of strong AI-related demand, Samsung has struggled to gain similar momentum. Its exposure to China — where the U.S. has imposed curbs on advanced chip exports — has further limited its ability to capitalize on the AI boom.

Samsung is aiming to ramp up HBM supply to Nvidia and other major clients in the second half of the year, but analysts say regaining market share will require faster execution and more competitive technology in a rapidly evolving landscape.