Samsung Electronics on Tuesday projected a far worse than expected 56% plunge in second-quarter operating profit due to weak AI chip sales, deepening investor concerns over the tech giant's ability to revive its struggling semiconductor business.

Samsung Electronics reports a 56% drop in operating income for Q2, marking its first profit decline since 2023 due to challenges in the memory chip market.

Samsung Electronics said on Tuesday it expected its second-quarter operating profits to fall by more than half, blaming US export controls on advanced artificial intelligence (AI) chips to China.