Samsung Electronics shares up as HBM competition heats up

[Graphics by Song Ji-yoon]

Samsung Electronics Co. shares were up on Wednesday after Nvidia Corp‘s chief executive dropped a hint about the potential use of the South Korean company’s high-bandwidth memory (HBM) in its products. Meanwhile, SK hynix Inc. saw its share fall as concerns that the competition in the HBM industry will become more fierce grow.

Samsung Electronics was trading at 77,400 won ($56) per share as of 10:05 a.m., a 2.79 percent increase from the previous session. In contrast, SK hynix was trading at 189,700 won per share, a 1.86 percent decrease from its last close.

Nvidia Chief Executive Jensen Huang addressed rumors suggesting that Samsung Electronics’ HBM did not meet the quality standards set by his company during a recent press conference, where he stated that the testing process is still ongoing. He emphasized that Nvidia is collaborating with SK hynix, Samsung Electronics, and Micron Technology, Inc., with all three expected to supply memory components.

Samsung Electronics shares saw a sharp decline of over 3 percent on May 24th over media reports that suggested that it failed to deliver HBMs to Nvidia.