Samsung Gains on Nvidia HBM Chip Approval

Samsung Electronics (KS:005930) shares surged up to 5% on Monday, reaching 83,400 won, after reports confirmed the company had cleared NVIDIA’s (NASDAQ:NVDA) requirements to supply its high-bandwidth memory (HBM) chips. The rally also supported a 0.8% rise in the KOSPI index.

South Korean outlets reported Samsung is preparing to provide 12-layer HBM3E chips to Nvidia, a critical supplier in the artificial intelligence market. HBM chips are advanced memory components attached to GPUs, powering AI data centers and high-performance computing.

This development marks a breakthrough for Samsung, which already supplies HBM3E to AMD (NASDAQ:AMD) and Broadcom (NASDAQ:AVGO), but had struggled to meet Nvidia’s strict quality and performance standards until now.

Samsung’s approval positions it more competitively against SK Hynix (KS:000660) and Micron Technology (NASDAQ:MU), both leaders in the HBM sector. SK Hynix was first to mass-produce HBM3E last year, followed by Micron, and continues to dominate market share with early advancements.

The competition is intensifying around the next generation of HBM4 chips. SK Hynix recently announced it had completed development of HBM4, sending its shares to record highs, while Micron and Samsung are racing to finalize their versions.

As demand for AI accelerates, Nvidia’s supply partnerships with leading memory manufacturers are critical to sustaining growth. Samsung’s clearance not only strengthens its foothold in the AI-driven chip market but also signals a potential shift in market dynamics as tech giants battle for leadership in advanced semiconductor innovation.