Samsung Warns Of Q3 Profit Drop Amid Shipment Delays Of AI Chip Approved By Nvidia

Samsung Warns Of Q3 Profit Drop Amid Shipment Delays Of AI Chip Approved By Nvidia
Samsung Warns Of Q3 Profit Drop Amid Shipment Delays Of AI Chip Approved By Nvidia

In This Article:

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.

Samsung Electronics (OTC:SSNLF) has issued a warning, predicting a significant drop in third-quarter profits, due to various factors including one-time costs and a surge in supply from Chinese rivals.

What Happened: On Tuesday, the South Korean tech giant announced an estimated operating profit of approximately 9.10 trillion won ($7.6 billion) for the quarter ending in September. This represents a 274% increase from the previous year’s 2.43 trillion won.

Don’t Miss:

  • This billion-dollar fund has invested in the next big real estate boom, here's how you can join for $10.
    This is a paid advertisement. Carefully consider the investment objectives, risks, charges and expenses of the Fundrise Flagship Fund before investing. This and other information can be found in the Fund's prospectus. Read them carefully before investing.

  • Your biggest returns may not come from the stock market. Invest the way colleges, pension funds, and the 1% do. Get started investing in commercial real estate today.

The company’s memory business has been impacted by “one-time costs and negative effects,” which include inventory adjustments by mobile customers and an increase in the supply of legacy products by Chinese memory companies, Samsung stated.

These memory chips are used in devices such as laptops and servers, and Samsung is the leading manufacturer of these chips. The company is also the world’s second-largest player in the smartphone market.

Furthermore, the company reported that shipments of HBM3E chips to major customers were delayed. In August, it was reported that Nvidia Corp. (NASDAQ:NVDA) successfully tested and approved Samsung Electronics' fifth-generation high bandwidth memory chips, known as HBM3E, for use in its artificial intelligence processors.

Price Action: Following the release of the earnings guidance, Samsung’s share price, which has already fallen by more than 24.12% year-to-date, dropped by an additional 0.7%, according to data from Benzinga Pro.

Wondering if your investments can get you to a $5,000,000 nest egg? Speak to a financial advisor today. SmartAsset’s free tool matches you up with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.

Keep Reading:

  • Powell’s moves don’t have to doom your high yields. You can still make great returns in private credit. Find out how.

  • A billion-dollar investment strategy with minimums as low as $10 — you can become part of the next big real estate boom today.
    This is a paid advertisement. Carefully consider the investment objectives, risks, charges and expenses of the Fundrise Flagship Fund before investing. This and other information can be found in the Fund's prospectus. Read them carefully before investing.

This article Samsung Warns Of Q3 Profit Drop Amid Shipment Delays Of AI Chip Approved By Nvidia originally appeared on Benzinga.com