Samsung Electronics' preliminary fourth-quarter operating profit missed estimates by a large margin, with the South Korean tech giant hit hard by extra costs as it works towards providing high-end chips to Nvidia .

South Korea's Samsung Electronics said on Wednesday it expected fourth-quarter profits to be sharply down compared with the previous quarter, falling short of expectations as the company struggled to meet robust demand for chips used in artificial intelligence servers.

In late 2024, it was reported that as a result of these record-breaking sales workers in Samsung’s memory business unit would receive a performance bonus equivalent to 200 percent of their base salary, the highest Target Achievement Incentive (TAI) figure ever posted by the company’s Device Solutions (DS) division.

Samsung Electronics released on Wednesday a fourth-quarter operating profit estimate that missed analyst estimates by a large margin, as it lagged behind rival SK Hynix in supplying high-end chips to Nvidia.

Samsung said in its third-quarter earnings report that it was making progress in its efforts to supply high-bandwidth memory chips to Nvidia, but it has not provided any updates since the. The ongoing delay appears to have put a big dent in its earnings, analysts told Reuters.

Samsung's earnings were dented by rising research and development costs and the ramp-up of manufacturing capacity for advanced chips

Samsung Electronics , the world's top memory chip maker, is expected to forecast on Wednesday its profit growth continued to slow in the fourth quarter as it struggled to keep up with Nvidia's strong demand for AI chips.

SEOUL, Jan. 8 (Yonhap) -- Samsung Electronics Co. on Wednesday estimated its fourth-quarter operating profit more than doubled from a year earlier but missed market expectations due to lackluster performance in its high-end memory chips for artificial intelligence accelerators.

The world's biggest maker of memory chips expected an operating profit of 6.5 trillion won ($4.46 billion) for the three months ended in December, up from 2.82 trillion won a year earlier, the company said in a regulatory filing.

Samsung Electronics estimated on Wednesday a 131% jump in fourth-quarter operating profit from a year earlier but missed analyst estimates by a large margin as it lagged behind rival SK Hynix in supplying high-end chips to Nvidia.

And Samsung has not been able to get its products certified by NVIDIA to date. And this is something that actually Samsung said they'd be able to achieve by the end of 2024. That clearly hasn't happened.