Sign up to save tools and stay up to date with the latest in AI
bg
bg
1

How Samsung Fell Behind in the AI Boom - and Lost $126 Billion in Market Value - Slashdot

Nov 09, 2024 - hardware.slashdot.org
Samsung's profit has significantly dropped, with around $126 billion wiped off its market value, due to its failure to capitalize on the AI boom. The company did not invest in high-bandwidth memory (HBM), a crucial part of semiconductor architecture, which has become increasingly important with the rise of AI applications. This oversight has led to a public apology from an executive about the company's recent financial performance.

In contrast, SK Hynix seized the opportunity and aggressively launched HBM chips, which were approved for use in Nvidia architecture, leading to record quarterly operating profit. Analysts suggest that Samsung's ability to recover in the short term is closely linked to Nvidia. If Samsung passes Nvidia's strict qualification process to become an HBM supplier, it could potentially return to growth and compete more effectively with SK Hynix.

Key takeaways:

  • Samsung's profit has significantly dropped, with around $126 billion wiped off its market value, due to missing the AI boom and underinvestment in high-bandwidth memory (HBM).
  • Nvidia has emerged as the top player in the AI infrastructure space, with its graphics processing units (GPUs) becoming the gold standard for AI training.
  • SK Hynix capitalized on the AI boom by aggressively launching HBM chips, which were approved for use in Nvidia's architecture, leading to record quarterly operating profit.
  • Samsung's potential comeback is closely linked to Nvidia's approval as a HBM supplier, which could allow it to compete more effectively with SK Hynix.
View Full Article

Comments (0)

Be the first to comment!