Key insights
- Samsung is accelerating HBM4E development, aiming to ship samples to Nvidia by next month. This move underscores the intense competition in the high-bandwidth memory market crucial for AI processors. Samsung's ability to meet Nvidia's standards and maintain its lead in HBM production could positively influence Nvidia's AI capabilities and potentially boost Samsung's market share, impacting US equity valuations for both companies.
Investing.com-- Samsung Electronics Co Ltd (KS:005930) is accelerating the development of its next-generation high-bandwidth memory (HB4E) product to ship samples to NVIDIA Corporation (NASDAQ:NVDA) by next month, South Korean media reported on Thursday.
Samsung is targeting producing the first sample of its HBM4E, in line with Nvidia’s standards, by as soon as next month, South Korean publication ChosunBiz reported, citing industry sources.
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The company was the first among its peers to begin mass production of HBM4, and is now racing to maintain that lead in the next generation of memory. Samsung had in March unveiled a physical HBM4E sample at Nvidia’s annual developer conference, although the Chosun report suggested that the unit was a sample for display purposes.
HBM is a key component of advanced artificial intelligence processors, with Samsung having benefited greatly from outsized demand for memory in the AI industry. The company is the world’s largest memory chip maker and is a key supplier to Nvidia.
Samsung largely beat out SK Hynix Inc (KS:000660) and Micron Technology Inc (NASDAQ:MU) in mass producing HBM4 memory, although the two were seen rapidly catching up in recent months.
Memory chip makers have benefited greatly from surging chip prices, as outsized AI demand also spurred supply shortages in the sector.