Samsung Electronics Co.’s pivotal chip division reported a smaller-than-expected profit as the world’s largest memory chipmaker fights to narrow the lead arch-rival SK Hynix Inc. has in the artificial intelligence arena.

Samsung Electronics reported fourth-quarter profit that rose 130% from a low base, confirming it had missed earlier estimates due to slowing memory chip demand and extra costs as it works towards providing high-end chips to Nvidia.

Samsung Electronics said on Friday it expected limited first-quarter earnings growth due to weak memory chip business conditions, as it continues to work towards providing high-end chips to Nvidia. The South Korean firm is also grappling with weak smartphone sales and said it aimed to revive mobile margins to above 10% this quarter,

Samsung Electronics reported better-than-expected fourth-quarter revenue and operating profit, though the latter dropped by nearly a third from the previous quarter.