Samsung has received Nvidia approval to use HBM3E memory for AI accelerators, allowing it to compete with SK Hynix and Micron.
Samsung shares soar on Nvidia test news
Samsung Electronics shares rose more than 5%, to their highest since August 2024, after reports that Nvidia had approved its 12-layer HBM3E memory for use in AI accelerators. This paves the way for Samsung to compete with SK Hynix and Micron in the high-speed memory segment.
Context and competition
Samsung spent nearly two years developing HBM3E, going through several delays and tests.
- Official certification is expected in late September or early October.
- Nvidia’s supply volumes this year will remain small, as major orders are already being fulfilled by SK Hynix and Micron.
- At the same time, investors are viewing the approval as a signal that Samsung is capable of meeting the highest standards in the HBM industry.
Stock Rise and Analysis
- Global funds bought more than $2 billion worth of Samsung shares in September.
- The company has already built up its position on expected AI DRAM shortages.
- Goldman Sachs called the potential approval a “key indicator” of Samsung’s technological recovery, which also raises the likelihood of HBM4 certification.
New directions
In July, Samsung signed a surprise $16.5 billion contract with Tesla to manufacture chips, reviving interest in its contract business.
