Samsung Electronics delivered an earnings shock on Tuesday, projecting a 56 per cent drop in second-quarter operating profit, as US restrictions on China and its struggle to supply key customer Nvidia with advanced memory products weighed on its performance.

The company, one of the world’s largest makers of memory chips, estimated its operating profit for April to June at Won4.6tn ($3.3bn), its weakest in six quarters. It was significantly lower than the Won6.3tn profit forecast by LSEG SmartEstimate. Sales were little changed at Won74tn.

Samsung’s device solution division, which houses its chip business, recorded a quarter-on-quarter “decline in profit due to inventory value adjustments and the impact of US restrictions on advanced [artificial intelligence] chips for China”, the company said.