[News] Samsung’s Q4 Profit Expected at USD 4.5 Billion, Missing Expectations Due to Weak HBM Performance

Amid the AI frenzy at CES 2025, Samsung Electronics announced a lackluster fourth-quarter earnings guidance, which could be attributed to ongoing delays in obtaining NVIDIA’s approval for next-gen HBM products, according to Yonhap News and Reuters.

As per Samsung’s press release, the company projected an operating profit of 6.5 trillion won (USD 4.46 billion) for the quarter ending in December, 2024, up from 2.82 trillion won in same period of 2023.

However, Yonhap News indicates that the operating profit forecast was 15.7% below the average estimate, which means that it dropped 29% quarter-on-quarter, further declining from the 9.18 trillion won (USD 6.32 billion) in the third quarter.

It estimated its 2024 operating profit at 32.72 trillion won (USD 22.5 billion), marking a 398.2% increase from 2023, as noted by Korea JoongAng Daily.

On the other hand, Samsung’s revenue for the October-December period grew 10.7% to 75 trillion won, up from 67.78 trillion won a year ago. In 2024, its annual sales rose 15.9% to 300.08 trillion won.

The company is expected to release final earnings results in late January, according to Yonhap News.

As per Reuters, in October, 2024, Samsung issued a rare apology for its weak third-quarter results, noting progress in supplying AI chips to NVIDIA. However, no further updates have been given, and delays in delivering high-end chips to the U.S. AI giant seems to impact its earnings continuously, the report adds.

Another report from the Chosun Daily suggests that for Samsung, a rebound may be unlikely before the second quarter of 2025, which would be driven by a semiconductor market recovery and increased HBM chip supply to boost earnings.

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(Photo credit: Samsung)