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A stray comment from Nvidia CEO Jensen Huang was enough to give Samsung’s shares a boost

Jun 05, 2024 - fortune.com
Nvidia CEO Jensen Huang's tentative support for Samsung's high-bandwidth memory (HBM) chips has led to a 2.8% rise in Samsung Electronics shares. Huang revealed that Nvidia is studying HBM chips made by Samsung and Micron Technologies, and Samsung's chips have passed Nvidia's tests. Samsung, which has been lagging in AI compared to its competitor SK Hynix, is planning to increase its HBM chip supply this year.

However, Huang also noted that Samsung's product needs more engineering work. He dismissed a Reuters report claiming that Samsung's HBM chips failed Nvidia's standards for heat and power consumption. Meanwhile, SK Hynix, Nvidia's primary HBM chip supplier, has seen a 79% increase in shares over the past year due to strong demand for Nvidia's GPUs to run AI applications.

Key takeaways:

  • Nvidia CEO Jensen Huang has given tentative support to Samsung's high-bandwidth memory (HBM) chips, causing shares in Samsung to rise by 2.8%.
  • Despite this, Huang noted that Samsung's product still needs more engineering work and has not fully endorsed the company's work.
  • Samsung is trying to catch up with its competitor SK Hynix, which is currently Nvidia's primary supplier of HBM chips, by increasing its supply of HBM chips this year.
  • Strong demand for Nvidia's GPUs to run AI applications has been beneficial for SK Hynix, with the company's shares up 79% over the past 12 months, compared to Samsung's 9%.
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