Samsung: Problems with AI storage cause profits to collapse

HBM memory is ideal for compute-intensive AI applications because it can store and retrieve massive amounts of data very quickly. Hynix and Micron have been setting records in recent quarters thanks to brisk sales of these promising, high-margin products.

Profit slump and bleak outlook

Due to inventory write-downs, Samsung's operating profit fell by 56 percent to the equivalent of €2.86 billion, according to preliminary calculations. This was the lowest figure in a year and a half. Analysts surveyed by financial data provider LSEG had hoped for an operating profit of €3.86 billion. The company plans to present final figures with detailed information at the end of July.