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.

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

Samsung Electronics is anticipated to report a 39% decline in second-quarter operating profit, primarily due to delays in supplying advanced memory chips to AI chip leader Nvidia.