Samsung predicts profit slump as its HBM3e apparently continues to underwhelm Nvidia

Analysis During the AI gold rush, the next best thing to selling the shovels – that is, the GPUs –is manufacturing the silicon that makes them possible. But while TSMC and SK-Hynix continue to cash in on Nvidia's successes, Samsung hasn't been nearly so fortunate.

The Korean giant is the world's largest supplier of memory modules but has so far struggled to secure Nvidia's signoff to use its latest-generation high bandwidth memory (HBM3e) in Nvidia's highest-end AI accelerators and Blackwell GPUs.

The company today posted guidance for its second quarter results and predicted revenue of approximately ₩74 trillion ($53.8 billion) and operating profit of ₩4.6 trillion ($3.3 billion)

That profit is considerably worse than the ₩6.3 trillion prediction financial analysts previously shared with Reuters. It will be Samsung’s lowest profit since Q4 2023’s ₩2.43 trillion ($1.75 billion) and ...