According to the Zac Finance APP, the world's largest memory chip manufacturer, Samsung Electronics (SSNLF.US), is expected to release its forecast for slowing profit growth in the fourth quarter on Wednesday, mainly due to difficulty in meeting NVIDIA's (NVDA.US) strong demand for AI chips. Its operating profit is expected to rise to 8.2 trillion won (approximately 5.6 billion USD) for the quarter ending in December, up from a low base of 2.8 trillion won in the same period last year, but lower than the 9.18 trillion won from the previous quarter.

Samsung is also the largest Smart Phone and Television manufacturer globally, and the company will announce its fourth quarter revenue and operating profit expectations on Wednesday, with plans to disclose detailed performance results, including profit breakdowns for each Business, by the end of January.

In recent weeks, many Analysts have lowered their earnings expectations for Samsung, with some expecting the company's operating profit to fall below 8 trillion won.

In October last year, the South Korean company unusually apologized for its disappointing third quarter performance and stated that progress was being made in supplying AI chips to NVIDIA.

However, Analysts state that the company has not provided any updates since then, and the delays in supplying high-end chips to NVIDIA continue to pressure its profits.

In November last year, Samsung replaced several executives in its chip division, appointed the head of the chip division as co-CEO, and allowed him to directly control the struggling memory chip Business.

Samsung is the highest Market Cap stock in South Korea, and its stock price fell by 32% last year, lagging behind the Large Cap decline of 10%.

In contrast, Analysts indicated that Samsung's local competitor, SK Hynix, a major supplier of advanced AI storage chips for NVIDIA, is expected to achieve record profits in the fourth quarter.

Prices remain under pressure.

Analysts stated that due to the sluggish demand for traditional chips used in Smart Phones and personal computers, coupled with rising production from Chinese competitors, chip prices are under pressure.

Given the weak market demand for consumer-centric products affecting the Business of USA chip maker Micron Technology (MU.US), the quarterly revenue and profit expectations announced by this Samsung competitor last month fell below Wall Street expectations, dragging down its stock price.

According to research Institutions TrendForce, the price of DDR4 DRAM chips for personal computers fell by 13% in the fourth quarter of last year, and is expected to drop another 15% this quarter. This offsets the positive impact of the weakening local currency driving overseas Forex profits.

In December of last year, the Korean won fell to its lowest level in 15 years after South Korean President Yoon Suk-yeol's declaration of martial law caused political turmoil, and USA President-elect Trump advocated for increased import tariffs.

Analysts say that the Business producing logic chips designed by customers like Qualcomm (QCOM.US) at Samsung is expected to continue to incur losses, thereby eroding its chip earnings.