Samsung Electronics reached its highest stock price of the year on Monday after reports emerged that the company had received the green light from Nvidia to supply advanced memory chips.
According to Bloomberg, the South Korean technology giant finally seems to be catching up with the leaders in the high-bandwidth memory (HBM) market, which has so far been dominated by SK Hynix.
According to local media reports, Samsung has successfully passed Nvidia’s qualification tests with its 12-layer HBM3E memory. These components are crucial for the latest generation of AI accelerators used to train large language models. This allows Samsung to compete for the first time in the same segment as its closest rivals, SK Hynix and the American company Micron.
The breakthrough comes at a time when the company is deploying additional resources to make up for its lag in the HBM market. While Samsung has dominated the production of standard memory for years, it has encountered delays and technical challenges in the niche market for high-end memory chips. Analysts see the news as a sign that the South Korean manufacturer is now able to meet the bar.
Investors are counting on scarcity
The stock market reacted positively: the share price rose by more than five percent and reached its highest level since August 2024. Investors appreciate not only the possible approval of Nvidia, but also broader prospects for the chip sector. They are counting on scarcity in the commodity memory market, an area in which Samsung is still the world leader. Foreign funds have bought billions of dollars worth of shares in recent weeks.
However, the practical effect will initially be limited. Nvidia has already placed most of its orders for this year with SK Hynix and Micron, so Samsung’s deliveries are likely to be small. Nevertheless, seeing Nvidia’s seal of approval is considered an important step, as it opens the door for future generations, including HBM4.
Samsung is also trying to strengthen its presence in other chip segments. In July, it signed an unexpected mega deal with Tesla worth $16.5 billion, which breathed new life into the group’s foundry division. For investors who doubted the company’s technological prowess, the news about Nvidia now offers renewed cause for optimism.