Samsung's latest chip failed Nvidia's test, causing its stock price to plummet to a recent low.


Samsung's latest chip failed to pass Nvidia's tests, leading to a new low in Samsung's stock price after the news broke.

According to Reuters, Samsung Electronics' latest high-bandwidth memory (HBM) chip has not passed Nvidia's tests, causing Samsung Electronics' stock price to drop on Friday.

Samsung Electronics Co. fell 2.3% to 76,500 won, hitting a one-month low. The decline in its stock caused South Korea's benchmark KOSPI index to drop nearly 1%.

Reuters reported that Samsung's HBM and HBM3E chips—its most advanced, designed for AI processing units—have not met Nvidia's standards due to heat dissipation and power consumption issues.

This suggests that Samsung might face delays in capitalizing on the rapidly growing AI industry demand and potentially lag behind its competitor SK Hynix Inc. (KS:000660), which currently is the sole supplier of advanced HBM3E chips in the market.

For contract chip manufacturers like Samsung, meeting Nvidia's requirements is crucial because the American company holds more than 80% of the market share for advanced AI processors. Nvidia also produces the most advanced AI processors on the market.

American competitor Micron Technology Inc. has also recently announced that it will begin producing advanced HBM chips. As AI development intensifies, the demand for these chips is expected to grow sharply.

Samsung is the world's largest memory chip maker. Although the company has benefited from increased AI-driven demand in recent quarters, this trend might change if it loses market share in the advanced HBM sector to competitors like Micron and SK Hynix.



Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

The End


Technology stocks

Technology stocks refer to the shares of companies engaged in research and development, production, and sales within the technology industry. These companies are primarily involved in information technology, telecommunications, semiconductors, software development, and other sectors. Their shares are often considered to have higher growth potential and risk.

Risk Warning

TraderKnows is a financial media platform, with information displayed coming from public networks or uploaded by users. TraderKnows does not endorse any trading platform or variety. We bear no responsibility for any trading disputes or losses arising from the use of this information. Please be aware that displayed information may be delayed, and users should independently verify it to ensure its accuracy.


Contact Us

Social Media