Samsung's Shares Reach Highest Level in Over a Year as Nvidia Certifies HBM3E Chips

TradingKey - Samsung Electronics' fifth-generation 12-layer HBM3E high-bandwidth memory (HBM) has finally passed Nvidia's quality certification test after 18 months of setbacks, signaling a revival of its competitive edge in the semiconductor sector, according to Korean media reports. This development saw Samsung's Korean stock (005930.KS) jump 5% in early Monday trading, reaching a peak not seen in over a year.

Insiders revealed that while Samsung is the 3rd supplier to receive Nvidia's approval after SK Hynix and Micron, its supply volume to Nvidia is expected to be modest. Nevertheless, achieving this certification is significant, as it is likely to dispel concerns over previous technical issues such as overheating in Samsung's chips. Additionally, Samsung's HBM3E has also been tested and approved for use with AMD’s MI350, and can pair with Nvidia's new B300 Blackwell Ultra GPU.

However, the tech race has already shifted to the sixth generation HBM4 high-bandwidth memory. Nvidia plans to use these chips for the first time in its next-gen graphics architecture, Vera Rubin, slated for release next year.

Nvidia has set the bar high, requiring suppliers to produce HBM4 running at speeds of 10Gbps, surpassing the industry standard of 8Gbps. SK Hynix has announced achieving the 10Gbps speed, while sources indicate Samsung has surpassed this, reaching 11Gbps, though Micron still struggles to meet this threshold. Currently, SK Hynix is the main supplier of HBM chips for US-based AI chip designers.

Samsung plans to ship a substantial quantity of HBM4 samples to Nvidia this month to secure certification as soon as possible. Earlier this year, the company engaged in talks with major AI chip manufacturers such as Nvidia, Broadcom, and Google regarding HBM4 supply, projecting mass supply to customers could begin as early as the first half of 2026.

Analysts suggest that if Samsung's HBM4 wins Nvidia's quality certification, the company could reclaim market share in the AI computing core memory sector, intensifying the competition between SK Hynix, Samsung, and Micron.

Earlier this month, SK Hynix announced it had completed the development of the world's first HBM4 and was ready to begin mass production. The company's Korean stock (000660.KS) has soared 40% in the past month.