Market Commentary

Samsung Electronics Joins the AI League With HBM Chip Supplies

Aisha Khan
30 Apr 2024 · 2 minutes read

Samsung Electronics predicts robust interest in artificial intelligence (AI) and intends to reduce the availability of premium chips, leveraging the resurgence in the worldwide memory chip sector.

In the first quarter, Samsung experienced a 13% increase in revenue, driven by a 96% surge in memory chip sales, largely attributed to significant price hikes, partially spurred by the rise of artificial intelligence (AI).

In its 2024 first-quarter results, Samsung reported a rise of 12.82% in sales year-on-year. 

While Congress members have yet to trade in Samsung, AI has also been a huge discussion topic in congressional trading. The top AI stock, NVIDIA Inc. (NVDA:US) is also a favorite among U.S. lawmakers, with over 60 trades made in NVDA stock by congress members. Most recently, Rep. Dan Newhouse reported his spouse’s sale of NVDA shares. Notably, former House speaker, Nancy Pelosi reported her spouse’s purchase of NVDA call options in 2023. Then valued at up to $5 million, Nvidia’s stock price has increased by 80.14% since this purchase.

For the future, Samsung aims to climb the ladder of supply of high-end chips, particularly high bandwidth memory (HBM), to meet the demand driven by artificial intelligence (AI) applications, notably from companies like Nvidia. Jaejune Kim, a Samsung vice president, announced plans to ramp up the production of HBM-related chips in 2024. Samsung has begun mass production of the latest HBM chips, such as the 8-layer HBM3E, targeting generative AI chipsets. All of these details add to the company's ambitious projects. 

In addition to others, Samsung faces stiff competition from SK Hynix and the role of AI in driving sales of its flagship smartphones. Thanks to rapid advancements in the AI landscape, Samsung and other tech companies will not be slowing down their development rate anytime soon.