Samsung Shares Hit Record High on AI Chip Breakthrough

The South Korean tech giant’s stock climbed as much as 5.4% to reach 190,900 won ($132.34), marking the first time the company has crossed the 190,000 threshold. The rally, which occurred as local markets reopened following a three-day holiday, saw Samsung significantly outperform the benchmark Kospi index. This momentum follows a strong overnight performance by U.S. technology firms, specifically Nvidia, which gained ground after securing a major artificial intelligence chip agreement with Meta Platforms.

Investor confidence is largely tied to Samsung’s aggressive push into the high-bandwidth memory (HBM) market. The company recently confirmed it has started shipping HBM4, its most advanced chip designed for high-performance AI processors. By accelerating its production timeline, the world’s largest memory-chip maker aims to regain market share lost to domestic competitor SK Hynix and U.S.-based Micron Technology.

The Premium of HBM4

According to a report by Nomura, the early release of HBM4 positions Samsung to capitalize on higher average selling prices. Analysts C.W. Chung and Eon Hwang estimate the new hardware could command a 30% to 40% premium over the previous generation. The technical specifications highlight significant performance gains:

• Base data transfer speeds of 11.7 gigabits per second (Gbps).
• Potential overclocking capabilities reaching 13 Gbps.
• A substantial increase in bandwidth compared to the 9.6 Gbps offered by HBM3E.

Driven by this technological edge, Nomura raised its price target for Samsung to 290,000 won, maintaining a "buy" rating. The firm also revised its operating profit forecast for Samsung’s semiconductor division to 44 trillion won for the first quarter, a sharp increase from the previous estimate of 33 trillion won.