Samsung Electronics saw a surge in its share price on Wednesday following comments made by Nvidia's CEO that alleviated concerns about the South Korean tech giant's high-bandwidth-memory (HBM) products. Shares of Samsung, the world's leading memory-chip maker, rose by as much as 3.6% to 78,000 won ($56.75) in morning trade, recovering from recent losses and outpacing the Kospi's 0.9% gain.
In recent months, Samsung's stock experienced declines amid worries that the company was falling behind in developing HBM products crucial for artificial-intelligence processors. Concerns were fueled by reports suggesting that Samsung's HBM samples faced challenges in Nvidia's tests due to heat and power-consumption issues.
However, Nvidia's CEO, Jensen Huang, provided reassurances, stating that Samsung's HBM products did not fail any qualification tests but require additional engineering work. Huang's comments, made at the Computex technology show in Taipei, underscored that the issues were part of the ongoing engineering process rather than insurmountable obstacles.
Huang's remarks sparked optimism among investors and analysts, with some anticipating favorable market conditions for Samsung's HBM products as global demand, fueled by AI applications, continues to grow. Analysts predict that Samsung could benefit from the increasing demand for HBM products, especially as supply struggles to keep pace, potentially positioning the company to fill the supply gap alongside SK Hynix and Micron Technology.
Comments