Shares of South Korean tech giant, Samsung Electronics, witnessed a significant surge of over 5% on Wednesday. This increase was triggered by reports of interest from the renowned chip manufacturer, Nvidia.
Nvidia’s Interest in Samsung’s High-Bandwidth Memory Chips
Earlier on the same day, media outlets reported that Nvidia’s co-founder and CEO, Jensen Huang, hinted at his company’s interest in Samsung Electronics’ new-generation high-bandwidth memory chips. These chips are currently being qualified for use in Nvidia’s graphics processing units.
“HBM memory is very complicated and the value added is very high. We are spending a lot of money on HBM,” Huang was quoted saying by the Korea Economic Daily. He further added that Nvidia is in the process of testing Samsung Electronics’ HBM chips.
Japan’s Nikkei publication also reported the news, stating that Nvidia is looking to procure the high-bandwidth memory chips from Samsung. However, it’s important to note that the qualification process does not obligate Nvidia to purchase Samsung’s supply.
Impact on the Market
This development comes after Samsung’s rival, SK Hynix, announced its plans to deliver its high-bandwidth memory (HBM) chips to customers. Reuters reported that Nvidia would be its first client. Following this news, shares of SK Hynix dropped by as much as 3.56% on Wednesday.
Meanwhile, Samsung’s stock experienced its largest percentage jump since September, according to Reuters data. During the annual general shareholders’ meeting on Wednesday, Samsung Electronics co-CEO Kye-Hyun Kyung announced that the company expects to generate $100 million or more in revenue from its next batch of advanced chip-packaging products in 2024.
