Samsung Electronics' preliminary fourth-quarter operating profit missed estimates by a large margin, with the South Korean tech giant hit hard by extra costs as it works towards providing high-end chips to Nvidia .

South Korea's Samsung Electronics said on Wednesday it expected fourth-quarter profits to be sharply down compared with the previous quarter, falling short of expectations as the company struggled to meet robust demand for chips used in artificial intelligence servers.

In late 2024, it was reported that as a result of these record-breaking sales workers in Samsung’s memory business unit would receive a performance bonus equivalent to 200 percent of their base salary, the highest Target Achievement Incentive (TAI) figure ever posted by the company’s Device Solutions (DS) division.