TLDR
- Samsung Electronics stock jumped 4.9% to 6.4% on reports it will start mass production of next-generation HBM4 memory chips this month for Nvidia AI processors.
- The move puts Samsung ahead of rival Micron Technology, which plans to ramp up its own HBM4 production in the second quarter of 2026.
- Samsung will reportedly deliver the advanced HBM4 chips to Nvidia by mid-February for use in the company’s upcoming Vera Rubin AI accelerators.
- Micron stock rose 3.08% despite the competitive news, with analysts expecting the company to maintain its 20%-25% market share in the HBM market.
- AI chip makers including Nvidia are shifting to a three-supplier sourcing strategy, creating room for Samsung, SK Hynix, and Micron to all capture market share.
Samsung’s stock got a nice bump on Monday, climbing 4.9% in local trading after reports emerged that the company is ready to crank out next-generation memory chips. Some sources put the gain even higher at 6.4%.
The South Korean tech giant is set to begin mass production of HBM4 chips later this month. That’s according to industry sources cited by Yonhap news agency over the weekend.
These aren’t just any chips. HBM4 represents the latest generation of high-bandwidth memory, crucial for powering artificial intelligence processors.
Samsung plans to supply these advanced semiconductors to Nvidia by mid-February. The chips will enhance Nvidia’s upcoming Vera Rubin AI accelerators.
Nvidia stock responded positively to the news as well, jumping 7.87%. The company’s dependence on reliable HBM suppliers makes Samsung’s production timeline important.
The Memory Chip Race Heats Up
The announcement puts Samsung in direct competition with American rival Micron Technology. Micron has been making serious gains in the HBM market over the past year.
Micron’s stock has more than quadrupled in the past 12 months thanks to surging demand for these high-margin memory chips. The company’s shares rose 3.08% on Monday despite Samsung’s competitive move.
Micron CEO Sanjay Mehrotra told analysts during the most recent earnings call that the company would ramp up its own HBM4 production in the second quarter of 2026. That puts Micron about a quarter behind Samsung’s timeline.
Samsung’s stock price has nearly tripled over the past 12 months. The memory chip boom has lifted all major players in the space.
SK Hynix, another South Korean competitor, saw its stock rise 5.72% on the Samsung news. All three companies are fighting for position in the lucrative AI chip supply chain.
Three Suppliers Better Than Two
Wall Street analysts aren’t particularly worried about Micron losing ground. The market is big enough for multiple winners right now.
UBS analyst Timothy Arcuri noted in a recent research note that AI accelerator vendors are moving toward a three-supplier sourcing strategy. Companies that previously relied on just two suppliers are now adding a third.
This shift works in Micron’s favor. Analysts generally estimate that Micron can sustain the 20%-25% market share it captured last year.
Demand for HBM chips remains sky-high. These chips carry higher profit margins than typical memory components, making them attractive for all manufacturers.
Samsung didn’t immediately respond to a request for comment from Barron’s early Monday. The company’s financial health appears solid with a current ratio of 2.63 and a debt-to-equity ratio of 0.04.
Samsung’s market capitalization stands at $694.62 billion with revenue of $223.32 billion. The company has posted a 7% revenue growth rate over the past three years.
The company’s P/E ratio sits at 32.73, close to its one-year high. Technical indicators show the stock may be overbought with an RSI of 100.
Samsung reported a gross margin of 36.65% and an operating margin of 9.51%. The Altman Z-Score of 7.78 suggests strong financial health despite some declining margins.
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