Samsung Electronics reported a 56% year-over-year decline in its second-quarter operating profit, which fell to 4.6 trillion South Korean won ($3.3 billion), significantly missing analyst expectations of 6.18 trillion won. This marks Samsung's first profit drop since 2023. The company attributed the sharp decrease primarily to delays in delivering its advanced AI memory chips, particularly the 12-layer HBM3E, to Nvidia, as well as the impact of U.S. export controls restricting advanced AI chip sales to China. These U.S. regulations have compounded challenges in Samsung's semiconductor business, which is also facing inventory valuation losses. While competitors like SK Hynix continue to benefit from the AI market surge, Samsung's struggles in securing Nvidia's certification for its AI chips have contributed to the profit slump. Samsung also announced plans to repurchase 3.9 trillion won in shares amid these difficulties. The company's total second-quarter revenue was approximately 74 trillion won, slightly down 0.09% from the previous year. The earnings miss has raised concerns about Samsung's ability to revive its semiconductor division amid ongoing geopolitical and market pressures.