Samsung Electronics Co.’s pivotal chip division reported a smaller-than-expected profit as the world’s largest memory chipmaker fights to narrow the lead arch-rival SK Hynix Inc. has in the artificial intelligence arena.

Samsung Electronics Co. has obtained approval to supply a version of its fifth-generation high-bandwidth memory chips to Nvidia Corp., according to people familiar with the matter.

The operating profit of South Korean tech giant Samsung Electronics sank almost a third in the fourth quarter owing to spending on research, the company said Friday, as analysts said it was struggling to meet demand for chips used in AI servers.

Samsung Electronics said on Friday it expected limited first-quarter earnings growth due to weak memory chip business conditions, as it continues to work towards providing high-end chips to Nvidia .

Samsung Electronics missed chip profit estimates, falling short of expectations due to slow demand in the company's memory business.

Samsung Electronics on Wednesday unveiled its newest Galaxy S25 smartphones, powered by Qualcomm's chips and Google's artificial-intelligence model, hoping its upgraded AI features can reinvigorate sales and fend off Apple and Chinese rivals.

CR reviews the Samsung Galaxy S25, S25+, and S25 Ultra, noting that the phones offer only modest hardware upgrades and a whole host of new Galaxy AI features.

NVIDIA CEO Jensen Huang says he can't trust Samsung's HBM memory, 'we cannot trust and do business with them because senior executives change frequently'.

Samsung is championing a “Hybrid AI” strategy on the Galaxy S25 series combining its own AI technologies with those of Google and other partners.

SK Hynix is the sole supplier of the advanced HBM chips to Nvidia, and had recently clocked a bumper fourth-quarter profit on AI-fueled chip demand. Its fourth-quarter profit also surpassed earnings from Samsung for the quarter.