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 faces a pivotal moment in the AI chip market, battling weak profits, delayed HBM shipments, and U.S. export curbs while investing heavily to regain leadership.

Analysts have said that Samsung has been declining, losing out to competitors because of factors other than the US export restrictions.