Featured News Headlines
Samsung’s HBM3E Passes Nvidia Test, AI Growth Boosts Stock
Samsung Electronics shares jumped over 5% on Monday, September 22, following reports that the company finally secured qualification from Nvidia for its 12-layer HBM3E high-bandwidth memory chips. The move is seen as a major milestone in the semiconductor industry. Samsung’s stock rose 5.4%, reaching its highest level since August 2024. Over the past year, the shares have gained about 33%.
What Triggered the Sudden Rise?
Local media outlets, including Korea Economic Daily, reported that Samsung’s 12-layer HBM3E product “recently passed Nvidia’s qualification tests.” This opens doors for Samsung to supply components to AI accelerators essential for training large-scale models like ChatGPT and others. It also places Samsung in more direct competition with SK Hynix Inc., particularly in the high-end HBM segment.
Samsung also recently secured a significant chip-manufacturing deal with Tesla Inc., valued at $16.5 billion, further boosting investor sentiment. This deal helps revive the company’s contract-manufacturing division, a segment that had been largely overlooked by investors in recent years.
Technical Indicators & Market Sentiment
On technical charts, Samsung reportedly broke out of a bullish flag pattern around $72.10, according to Anshul Jain, Head of Research at Lakshmishree. This breakout could open the path toward a potential target of $95, if current momentum holds. Jain noted that trading volume trends support a bullish outlook, with stronger activity on up days and lighter trading on down days — often seen as a sign of accumulation.
Despite being extended from its short-term moving averages (10-day and 20-day EMAs), which might lead to a brief consolidation, the broader chart structure remains positive. Momentum, volume, and trend indicators all currently favor the bulls.
Broader Impact: South Korean Market & KOSPI
Samsung’s surge also helped lift the broader South Korean stock market. Semiconductor stocks have led the rally on the KOSPI index, which climbed 1.07% to a record high of 3,482.25. This rise reflects investor optimism driven by strong anticipated demand for chips powered by the global AI boom.
Other major stocks also participated in the rally. LG Energy Solution, a leading battery manufacturer, rose 0.29%, while Hyundai Motor gained 1.64%. Kia Corp, Hyundai’s affiliate, remained flat.
Significance and Risks
Samsung’s qualification by Nvidia is particularly significant because earlier versions of its HBM technology had reportedly failed to meet Nvidia’s performance standards. While Samsung’s shipments to Nvidia may remain limited in the short term — as SK Hynix and Micron have already fulfilled most current orders — the validation still marks a major strategic win.
Reports also suggest Samsung is scaling up clean-room capacity and adjusting its chip designs to meet Nvidia’s standards more consistently, which could help the company compete more aggressively in future AI-driven demand cycles.
What’s Next
The Nvidia qualification may represent a turning point for Samsung’s memory division and its role in the AI chip supply chain. Key developments to monitor going forward include whether Samsung can scale production quickly, how its chips perform in real-world deployments, and how competitors like SK Hynix and Micron respond to the renewed competition.
