Samsung Electronics Co. fell short of market expectations with disappointing profits from its chip operations, highlighting the challenges in the AI chip sector.
The company's chip division, typically its largest profit contributor, generated an operating profit of 3.86 trillion won ($2.8 billion) for the September quarter, significantly below the anticipated 6.7 trillion won. This raises concerns about Samsung's ability to keep pace with industry rivals in the rapidly evolving AI market where competition is intensifying.