Samsung Electronics apologises for disappointing profit as it struggles in AI chips

Samsung Electronics has warned that its third-quarter profit will fall short of market expectations, estimating an operating profit of 9.1 trillion won ($6.78 billion) compared to analysts' expectations of 10.3 trillion won.

The decline is attributed to delays in its AI chip business and increased competition from Chinese rivals in conventional chips.

Samsung is struggling to keep pace with competitors like SK Hynix in supplying high-bandwidth memory chips to Nvidia for AI applications.

Additionally, its contract chip manufacturing business is facing losses due to competition with TSMC.

Samsung's share price dropped 1.6% following the earnings guidance announcement.