Samsung Gains 6% on Reports It’s Joining Nvidia AI Suppliers

Samsung Gains 6% on Reports It’s Joining Nvidia AI Suppliers

Following news that it had been awarded the contract to supply cutting-edge memory chips to AI pioneer Nvidia Corp., Samsung Electronics Co. increased by more than 6%.

The leading South Korean electronics manufacturer will begin shipping HBM3, a newer kind of memory made to work with artificial intelligence accelerators.

In the fourth quarter, according to Citigroup analysts Samsung Gains 6% led by Peter Lee. Since January 2021, its share price has increased the highest.

Until now, SK Hynix Corp., Nvidia’s arch-enemy, has been the only supplier of high-bandwidth memory for AI accelerators.

According to reports, leading AI company Nvidia Corp. will be receiving cutting-edge memory chips from Samsung Electronics Co., the company’s stock increased by more than 6%.

The top electronics company in South Korea will start delivering HBM3, a newer generation of memory designed to operate with artificial intelligence accelerators.

Samsung Gains 6%

In the fourth quarter, according to a report by Citigroup analysts including Peter Lee. Its stock price increased the highest since January 2021.

Nvidia’s main supplier of high-bandwidth memory for AI accelerators up until this point has been arch-rival SK Hynix Inc.

In a study that raised Citigroup’s price objective for Samsung from 110,000 won to 120,000 won, Lee and Josh Yang stated.

“We predict Samsung will emerge as one of the Samsung Gains 6% primary providers of HBM3 following its successful admission into Nvidia’s HBM supply chain.”

We believe Samsung will gain in the long run from the expansion of the memory and AI computing markets.

The arrangement for Samsung to supply HBM3 to Nvidia was seal, according to Korea Economic Daily on Friday, which cited unname sources in the sector.

This occurred after Samsung’s chips passed the final quality test carried out by the American chip designer. According to the source, Samsung will begin supplying the important memory chips as early as next month.

It would be advantageous for Nvidia to have Samsung as an alternate HBM3 supplier.

As it broadens its possibilities, the Santa Clara, California-based corporation, whose shares have increased three times this year to a market value of $1.2 trillion, Samsung Gains 6% can see better costs or performance as well as a more consistent supply.

A representative for Samsung declined to comment.

As a result of the news, suppliers to Samsung also saw their stock prices rise. Hana Micron Inc., a semiconductor testing and packaging company.

Increased by the daily limit of 30%. Supplier of printed circuit boards Daeduck Electronics Co. saw a 7.4% increase.

HBM3, which experts believe is suit for bandwidth-hungry AI services, is a technology that Hynix leads the world in.

A new HBM chip will reportedly be release by Samsung later this year. Shares of Hynix decreased 1.5% on Friday after initially increasing.

Peter James

Peter James

Admin Peter James, AZ24News.com | Peter James is the admin of AZ24News, a news website that provides coverage of news and events in World. He has been with the company and has helped to grow the website into a respected source of news for the community. Peter is passionate about providing accurate and unbiased News for Everyone. He is also committed to creating a website that is user-friendly and easy to navigate.
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