Samsung surges 5% to 13-month high on Nvidia AI nod

Samsung Electronics’ shares rallied over 5% after reports that Nvidia will use its advanced memory chips, pushing the stock to its highest level since August 2024. The rally took shares to 83,400 won, close to about $60, and boosted the KOSPI benchmark by 0.8%.

Local reports also indicate that Samsung’s 12-layer HBM3E product recently passed Nvidia’s qualification tests, though the company has not yet issued an official statement. Passing the tests means its chips can be deployed in the AI accelerators that train models like ChatGPT and DeepSeek, allowing the firm to compete with SK Hynix’s premier offerings.

Goldman Sachs sees Samsung’s clearance as a positive development

Shares of Samsung are up about 20% this month, supported by bets that demand for AI will tighten supplies of commodity memory chips, an area where the tech conglomerate continues to lead. Foreign investors have also snapped up more than $2 billion of the company’s stock in September alone. Adding to the momentum, speculation is growing that the company has finally cleared Nvidia’s qualification tests. 

Talk of Samsung’s qualifying has been around for months, but investors are only paying closer attention now, nearly 19 months since development started and after a series of delays. Citigroup analyst Peter Lee now expects an official announcement by late September or early October.

However, Samsung may ship only a small number of units to Nvidia this year, seeing as competitors SK Hynix and Micron have already filled most of the demand. Even so, the move is seen as a major step for the company, which has been under pressure over delays that cast doubt on its technical edge. 

Goldman Sachs analysts noted that even with investor expectations tempered by delays, Nvidia’s nod would still represent an encouraging development for the company. 

Giuni Lee, an analyst at the bank, stated that if the deal is confirmed, “it would be a clear indication that the company is able to meet the highest standard in the HBM industry.” He added that the development might raise the chances that Nvidia will approve Samsung’s HBM4 chips.

Nvidia recently revealed its planned investment in Intel

Samsung has been providing HBM3E chips to AMD and Broadcom, though it only recently secured Nvidia’s approval. SK Hynix, its key rival, was the first in the industry to mass-produce HBM3E chips last year, with Micron Technology Inc. following suit. 

While the approval brings Samsung closer to SK Hynix and Micron, SK Hynix has already announced the completion of its HBM4 development, news that sent its stock to all-time highs, leaving Micron and Samsung still working to complete their own versions.

Nevertheless, Samsung has shown progress outside its core memory business. Its $16.5 billion agreement with Tesla in July revived confidence in its foundry arm, which was previously viewed as a fading part of the business.

Meanwhile, Nvidia recently disclosed a $5 billion funding commitment to Intel and a plan to collaborate on next-generation chips for PCs and servers. Analysts suggest this supports the Trump administration’s campaign to restore Intel’s competitiveness.

According to reports, Nvidia is set to acquire Intel’s common stock at $23.28 per share. The deal would give the semiconductor company over 4% of Intel.

Jensen Huang commented on the deal, “This historic collaboration tightly integrates Nvidia’s AI and accelerated computing technology with Intel’s CPUs and vast x86 ecosystem, merging two world-class platforms into one.”

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