TLDRs;
- Samsung shares jumped 5% after reports that its 12-layer HBM3E memory chips passed Nvidia’s qualification tests.
- The approval positions Samsung as a competitor to SK Hynix in the high-bandwidth memory market.
- Samsung’s stock is up nearly 20% this month amid surging demand for AI-related chips.
- Analysts suggest Nvidia’s approval could open doors for Samsung’s future HBM4 technology
Samsung Electronics Co., Ltd. shares surged by 5% on Monday, hitting their highest level since August 2024 before recoiling, following reports that the company’s advanced high-bandwidth memory chips (HBM3E) have passed Nvidia Corporation’s qualification tests.
The development signals a major breakthrough for the South Korean tech giant as it seeks to strengthen its position in the global AI chip race.
Nvidia Validation Boosts Investor Confidence
According to local media outlets including the Korea Economic Daily, Samsung’s 12-layer HBM3E chips were recently approved for use in Nvidia’s AI accelerators. These accelerators power large-scale artificial intelligence applications, such as generative AI platforms developed by companies like OpenAI and Meta.
Passing Nvidia’s stringent qualification marks a significant milestone for Samsung, positioning it as a viable competitor to SK Hynix Inc., which has so far dominated the high-bandwidth memory market.
The news drove Samsung’s stock upward, before the gains later recoiled slightly, as investors weighed the long-term implications. Analysts note that while shipments to Nvidia this year may remain limited, the approval signals Samsung’s potential to secure larger deals in the near future.
Rising Demand for AI Chips Drives Rally
Samsung’s market momentum has been building throughout September, with shares climbing nearly 20% over the month.
Investors are betting on sustained demand for AI-related chips, which could spark shortages of both high-bandwidth and commodity memory chips by 2026. Global funds have reportedly purchased more than $2 billion worth of Samsung stock in September alone, underscoring confidence in the company’s renewed push into the AI hardware sector.
Citigroup analyst Peter Lee expects Samsung to gain official confirmation of the Nvidia qualification by late September or early October. If verified, the approval would represent not only a technical victory but also a reputational boost for Samsung after delays in bringing its HBM3E product to market.
Strategic Deals Add to Growth Prospects
Beyond high-bandwidth memory, Samsung is broadening its chipmaking portfolio. In July, the company announced a surprise $16.5 billion semiconductor deal with Tesla Inc., reigniting its foundry business, which many investors had written off in recent years.
Goldman Sachs analysts noted that Nvidia’s approval of Samsung’s HBM3E chips could pave the way for qualification of next-generation HBM4 technology as well. “It would be a clear indication that the company is able to meet the highest standard in the HBM industry,” said Goldman analyst Giuni Lee.
For now, Nvidia remains heavily reliant on SK Hynix and Micron Technology Inc. for memory chip supplies. However, Samsung’s successful entry into the field could diversify Nvidia’s supplier base and reduce supply bottlenecks in the rapidly expanding AI industry.
