Samsung Electronics on Tuesday projected a 56% drop in second-quarter operating profit from a year earlier, missing analysts' estimates by far.

 

Its chip business struggled with weak sales of artificial intelligence chips, dogged by delays in the supply of its latest chips to Nvidia and continued losses in its contract chip manufacturing business, analysts said.

 

The world's largest memory chipmaker estimated an operating profit of 4.6 trillion won for the April-June period, versus a 6.2 trillion won LSEG SmartEstimate.

 

That would compare with 10.4 trillion won in the same period a year earlier and 6.7 trillion won in the preceding quarter.

 

Revenue would likely fall 0.1% to 74 trillion won from a year earlier, the filing showed.

 

Samsung is expected to release detailed results, including a breakdown of earnings for each of its businesses, in late July.