Investing.com-- Samsung Electronics (KS: 005930 ) shares slid more than 2% on Monday, a day ahead of its second-quarter earnings report, which analysts estimate will reveal a sharp drop in operating profit.

According to LSEG estimates, second-quarter operating profit is expected to fall 39% to 6.3 trillion won ($4.6 billion), the lowest in six quarters.

The steep forecast is primarily tied to delays in shipping high-bandwidth memory (HBM) chips to Nvidia (NASDAQ: NVDA ), hitting Samsung’s performance in the lucrative AI chip market.

These delays come at a time when competitors like SK Hynix Inc (KS: 000660 ) and Micron (NASDAQ: MU ) are capitalizing on upbeat demand, leaving Samsung trailing.

Further complicating the outlook are U.S. trade restriction risks, which were hampering Samsung’s access to the Chinese market and straining its chip business.

Despite strong smartphone sales driven by pre-tariff stockpiling, investor sentiment has cooled.

Seoul-listed Samsung stock fell 2.5% to 61,700 won as of 06:33 GMT.