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Samsung Surges Over 6% as it Joins Hands with India to Supply Cutting-Edge AI Chips

Samsung Electronics experienced a remarkable surge of more than 6% in its stock price on the South Korean stock market following the announcement of a significant partnership. Reports have emerged that Samsung has secured the rights to supply state-of-the-art memory chips to Nvidia, a prominent U.S. artificial intelligence (AI) chip manufacturer.

Analysts from Citigroup disclosed this groundbreaking development, revealing that Samsung is set to commence the supply of HBM3 memory chips, a new generation of high-performance chips designed to accelerate AI operations. This strategic move is slated to begin in the fourth quarter of 2023. The news has triggered Samsung’s most substantial share price increase since January 2021.

Traditionally, SK Hynix has been the sole South Korean technology company supplying high-quality, high-bandwidth memory chips to Nvidia, playing a pivotal role in enhancing the speed and efficiency of AI processing.

Citigroup analysts Peter Lee and George Young noted, “After Samsung successfully entered the Nvidia supply chain, we also anticipate that Samsung will emerge as one of the primary providers of HBM3 chips. We expect Samsung to reap long-term benefits from the burgeoning demand for memory chips and the expansion of the AI computing market.”

Reports published in the Korea Economic newspaper further corroborate this collaboration, suggesting that Samsung and Nvidia have inked an agreement for the supply of HBM3 chips following the successful conclusion of quality testing procedures.

Furthermore, the report indicates that Samsung is poised to commence HBM3 chip deliveries as early as October. This development is set to be mutually advantageous, as India will benefit from having Samsung as an additional supplier of HBM3 chips.

Despite the wealth of information circulating about this significant venture, a spokesperson for Samsung has declined to comment on the reports, keeping the finer details of the partnership shrouded in mystery.

This groundbreaking collaboration between Samsung and Nvidia is not only a testament to the technological prowess of these giants but also a significant milestone in advancing the capabilities of AI computing. As the demand for AI-driven technologies continues to rise, partnerships like these are poised to shape the future landscape of the industry.

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