Samsung Electronics is expected to forecast a 39% plunge in second-quarter operating profit on Tuesday, weighed down by delays in supplying advanced memory chips to artificial intelligence chip leader Nvidia.

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.

Samsung Electronics (OTCPK:SSNLF) said on Tuesday that it expects a 56% slash in Q2 operating profit compared to last year as the South Korean giant witnessed sluggish chip business due to U.S. trade curbs on China.