One of the world's largest chipmakers reports troubling financials as it cedes ground to competitors in legacy and advanced technologies.

Instead, the South Korean technology giant is whiffing on opportunities and falling behind the early winners of the AI era such as Taiwan Semiconductor Manufacturing, known as TSMC, and local rival SK Hynix.

Samsung Electronics Co. posted profit and revenue that fell short of market expectations, stoking uncertainty about the outlook of its pivotal chip division.