The share of Samsung rose by about 5% on Tuesday after Nvidia CEO Jensen Huang said that the South Korean company is producing Nvidia’s new artificial intelligence (AI) chips. This news made investors more confident that Samsung’s manufacturing business could improve in the coming years. NVIDIA recently introduced a new AI inference processor that uses technology from a chip startup called Groq.
Haung made this announcement after Nvidia’s GTC developer conference in California on Monday. In addition to that, he also said, “I want to thank Samsung, who manufactures the Groq LP30 chip for us, and they’re cranking as hard as they can.” He added that the chips are already in production and will start shipping in the second half of this year. Samsung also displayed Nvidia’s AI chips made with its 4-nanometer manufacturing technology during the event.
After this news, Samsung’s price went up 4.3% to 196,800 won, and then it reached 198,000 won. Overall, the South Korean stock market rose by around 2.7%. Experts say this collaboration will be helpful, which makes chips for major companies like Tesla and Apple, as well as Samsung’s smartphone business.
In the past year, Samsung also faced a million-dollar loss; however, experts have hope that it will reach break-even by next year if demand for advanced chips grows.
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Meanwhile, AMD CEO Lisa Su will meet Samsung Chairman Jay Y. Lee in South Korea on Wednesday. Some reports say they may talk about possible cooperation in memory chips and semiconductor technology.
