Samsung is bracing for a significant drop in profits for the second quarter of 2025, with expectations pointing to a 56% decrease, much worse than initially forecasted. The decline is attributed to sluggish sales of high-performance memory chips crucial for artificial intelligence (AI) devices and services.
Meanwhile, Samsung's rivals like SK Hynix and Micron are capitalizing on the AI market boom in the US, while Samsung's reliance on the Chinese market, coupled with American restrictions and local competition, is hindering its sales growth.Reuters reports that Samsung's future hinges on its ability to catch up in the AI chip race, as falling behind could pose significant risks.
Will the release of Galaxy Z foldables be Samsung's saving grace? | Image by PhoneArena
