Samsung Stock Rises by 6% as HBM3 Deal with NVIDIA Breaks Through
Samsung Electronics stock increases by 6% as the company strikes a deal with NVIDIA for HBM3. As reported by Korean Economy at v.daum.net, NVIDIA has evaluated Samsung’s HBM3 quality and is satisfied with the results.
Samsung to Supply NVIDIA with HBM3
Starting from next month, Samsung will supply HBM3 to NVIDIA, skyrocketing Samsung’s market-share in the HBM3 industry to almost 50%. It is worth noting that Samsung is AMD’s primary HBM3 source for its Instinct MI Accelerators. Likewise, many products from NVIDIA such as the H100 are also based on HBM3.
Samsung has scored the industry’s largest HBM3 consumer, once exclusive to SK Hynix. Seeing the AI-boom materialize, it is only logical for Samsung to step in and provide its offerings. Samsung is already well-acquainted with the dynamics of this market, given its vast track record. The entire third quarter of 2023 was utilized for verifying whether Samsung’s HBM3 is up to the mark and that sure is the case.
NVIDIA currently dominates 90% of the AI-centered GPU market. Samsung finally has its opportunity to dive into the riches as the demand for NVIDIA’s AI GPUs increases.
What is HBM?
HBM is a type of memory that leverages 3D stacking by piling multiple DRAM chips on top of one another. These are interconnected via TSVs (Through-Silicon-Vias). Read our article on 3D Packaging for more insight on this topic.
Long story short, HBM offers high bandwidths for hardware that needs such throughput. HBM is significantly faster, although slower in terms of latency than GDDR, used in consumer GPUs.
Samsung Electronic Stock Rises by 6%
With the spread of this rumor, Samsung Electronics stock rose by 6% ending the day at 71,000 won. Lee Se-cheol, Executive Director of Citi Global Market Securities claims:
“Samsung Electronics will become the main supplier by supplying HBM3 from the fourth quarter of this year.”
Lee Se-cheol
Following Samsung’s penetration into this remunerative market, stock expectations currently stand at 110,000 won to 120,000 won. Whether Samsung’s efforts bear fruit or not, depends entirely if Samsung is able to compete against SK Hynix.
As of now, Samsung has officially refuted any such collaboration. The company replied;
“We cannot confirm delivery-related information to customers such as Nvidia.”
Samsung
It will take a while before things finalize and Samsung confirms its contract, as is the standard. What do you think about Samsung’s HBM3 deal with NVIDIA? Tell us in the comments.
Source: v.daum.net
