Introduction#
Shares of Samsung Electronics and SK Hynix experienced a notable increase on Wednesday, following announcements of new partnerships with Nvidia. These developments underscore the growing importance of both companies in the artificial intelligence (AI) supply chain.
Stock Performance#
In Seoul trading, Samsung's shares jumped over 6%, reaching 206,500 won, while SK Hynix saw a rise of more than 4%, hitting 1,010,000 won. This surge reflects investor optimism after Nvidia showcased both companies as essential partners during its GTC developer conference.
Samsung's Role in AI#
Nvidia's Chief Executive, Jensen Huang, announced that Samsung would be responsible for manufacturing its latest AI inference chips using a cutting-edge 4-nanometre process. This advancement is expected to bolster Samsung's foundry business, which has faced challenges due to losses and decreased orders.
Additionally, Samsung introduced its next-generation high-bandwidth memory, known as HBM4E. This product aims to satisfy the increasing demand from Nvidia's forthcoming AI accelerators, highlighting Samsung's commitment to innovation in the competitive memory market.
SK Hynix's Commitment to Technology#
SK Hynix, a prominent supplier of HBM chips to Nvidia, reaffirmed its technological leadership in advanced memory solutions. The company also indicated plans for continued capacity expansion to meet the strong demand for its products, further solidifying its position in the AI supply chain.