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Investing.com - Samsung Electronics has secured qualification from Nvidia for its 12-layer HBM3E high-bandwidth memory after several failed attempts to meet Nvidia’s standards, according to a report from Korean Economic Daily cited by JPMorgan. Nvidia, with its impressive $4.27 trillion market cap and 71.55% revenue growth over the last twelve months, maintains strict quality standards as a dominant force in the semiconductor industry.
Initial supply volumes to Nvidia will be limited as Samsung becomes the third qualified supplier after SK Hynix and Micron. Samsung had already been qualified by AMD and shipped these chips to the company, but Nvidia’s qualification holds particular significance given Nvidia’s dominant position in the AI ecosystem.
JPMorgan notes that this development is positive for semiconductor capital equipment companies, particularly for ASML (NASDAQ:ASML) in Europe, as it brings Samsung back into the advanced HBM race after lagging behind competitors.
Unlike its peers, Samsung has available cleanroom space that allows it to install equipment quickly to scale production, potentially making it a more significant customer for ASML’s EUV tools in 2026 with tool volumes ramping into 2027.
The qualification also suggests a positive pathway for Samsung toward HBM4 qualification, which would unlock more significant equipment investments, according to JPMorgan’s analysis.
In other recent news, Nvidia has made a significant $5 billion investment in Intel, aiming to combine Nvidia’s AI and accelerated computing capabilities with Intel’s CPU technology. This strategic collaboration spans both AI and PC markets. Analyst firms such as TD Cowen and Piper Sandler have reiterated their positive outlook on Nvidia, maintaining Buy and Overweight ratings, respectively, with price targets of $235 and $225. Bernstein has also reiterated an Outperform rating, suggesting that the investment does not indicate a shift away from Nvidia’s existing partnerships. Additionally, Samsung Electronics has successfully passed Nvidia’s qualification test for its 12-layer HBM3E chip. This approval comes about 18 months after Samsung completed the chip’s development. These developments highlight Nvidia’s strategic moves in expanding its technological partnerships and product qualifications.
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