Samsung sees weaker-than-expected third-quarter profit by Investing.com

Investing.com– Samsung Electronics Co Ltd (KS: ) on Tuesday issued a weaker-than-expected third-quarter profit estimate, as an initial boost from artificial intelligence demand now appeared to be fizzling out.

The South Korean conglomerate said it expected operating profit for the quarter to Sept. 30 of about 9.10 trillion won ($6.77 billion), weaker than Bloomberg estimates of 11.48 trillion won. Won.

While the figure represents a nearly four-fold increase from the 2.43 trillion won seen last year, it is weaker than Samsung’s second-quarter operating profit of 10.44 trillion won.

Consolidated sales are expected at 79 trillion won, up from 67.4 trillion won last year and 74.07 trillion won in the previous quarter.

Samsung is struggling to catch up with smaller rivals SK Hynix Inc (KS: ) and Micron Technology Inc (NASDAQ: ) in producing advanced memory chips for use in AI applications.

While demand from the AI ​​industry boosted sales of memory chips, particularly those used in servers and data centers, Samsung faced slower demand for chips used in personal devices.

This trend has greatly affected Samsung’s conventional DRAM chip sales, as has competition from Chinese foundries.