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.

The South Korean tech giant attributed its disappointing results to a combination of US export restrictions on advanced artificial intelligence chips bound for China and ongoing

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