TLDR
- Samsung Electronics shares jumped 4.9% to 6.4% following reports that it will begin mass production of next-generation HBM4 memory chips this month for Nvidia’s AI processors.
- The move puts Samsung ahead of rival Micron Technology, which plans to increase its own HBM4 production in the second quarter of 2026.
- Samsung would 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% to 25% market share in the HBM market.
- AI chipmakers including Nvidia are adopting a three-vendor sourcing strategy, creating space for Samsung, SK Hynix and Micron to capture market share.
Samsung shares saw a sharp rise on Monday, climbing 4.9% on the local stock market after reports emerged that the company is ready to produce next-generation memory chips. Some sources put the gain even higher at 6.4%.
Samsung Electronics Co., Ltd. (005930.KS)
The South Korean tech giant is expected to begin mass production of HBM4 chips later this month. This is 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 also reacted positively to the news, jumping 7.87%. The company’s dependence on reliable HBM suppliers makes Samsung’s production schedule important.
The race for memory chips intensifies
The announcement places Samsung in direct competition with its American rival Micron Technology. Micron has made significant gains in the HBM market over the past year.
Micron stock has more than quadrupled over the past 12 months on growing 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 on the latest earnings call that the company would increase its own HBM4 production in the second quarter of 2026. That puts Micron about a quarter behind Samsung’s schedule.
Samsung’s stock price has almost tripled in the past 12 months. The memory chip boom has benefited all the major players in the sector.
SK Hynix, another South Korean competitor, saw its stock rise 5.72% following the Samsung news. The three companies are fighting for their position in the lucrative AI chip supply chain.
Three suppliers are better than two
Wall Street analysts aren’t particularly worried about Micron losing ground. The market is large 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-vendor sourcing strategy. Companies that previously relied on just two suppliers are now adding a third.
This change works in Micron’s favor. Analysts generally believe that Micron can maintain the 20% to 25% market share it captured last year.
Demand for HBM chips remains extremely high. These chips generate higher profit margins than typical memory components, making them attractive to all manufacturers.
Samsung did not immediately respond to a request for comment from Barron’s early Monday. The company’s financial health appears strong with a quick 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 revenue growth rate of 7% over the past three years.
The company’s P/E ratio stands at 32.73, close to its one-year high. Technical indicators show that the stock could be overbought with an RSI of 100.
Samsung reported a gross margin of 36.65% and an operating margin of 9.51%. Altman’s Z-score of 7.78 suggests strong financial health despite some declining margins.
The article Samsung Stock Rises on HBM4 Chip Production Plans for Nvidia appeared first on CoinCentral.
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date: 2026-02-09 12:37:00