Samsung Electronics is expected to report a significant increase in quarterly profit on Tuesday, with analysts forecasting a jump to 10.33 trillion won ($7.67 billion) for the quarter ended September 30.

This marks a substantial rise from 2.43 trillion won a year earlier, driven by improving chip demand. However, Samsung’s recovery has slowed, partly due to its delayed entry into the high-margin artificial intelligence (AI) chip market.

While global demand for AI server chips has surged, Samsung has struggled to catch up with competitors like SK Hynix and Micron in supplying AI chips to Nvidia.

The company has also faced challenges from Chinese rivals in the conventional chip market. Samsung’s chip division is expected to post a profit of 5.5 trillion won, down 15% from the previous quarter, hurt by lower demand for traditional DRAM chips and bonus provisions.

Analysts warn that Samsung’s higher exposure to China and traditional mobile chips makes it vulnerable to geopolitical risks and weaker market demand. Its mobile phone business is also under pressure, with sales of premium foldable phones underperforming and operating profit in its mobile division falling by 20% year-on-year.

Samsung’s struggles come as competitors like Micron report record revenues due to booming AI chip demand, raising concerns about Samsung’s position in the semiconductor market.