AsianFin -- Samsung Electronics Co. shares rose after Nvidia Corp. founder Jensen Huang expressed confidence in Samsung's ability to overcome technical hurdles affecting its top-tier memory products. Huang’s remarks helped counterbalance the impact of Samsung’s underwhelming quarterly earnings.
The world’s largest memory chipmaker incurred substantial R&D expenses and front-end capacity expansion costs in the December quarter as it strives to compete with SK Hynix Inc. and Micron Technology Inc. in the lucrative AI market. Samsung has faced delays in securing Nvidia certification for its latest memory products, allowing SK Hynix to gain a competitive edge in the high-bandwidth memory segment critical to AI accelerators.
Investors had anticipated disappointing results from Samsung, which lost a third of its market value in 2024, compared to a more than 20% surge by SK Hynix. However, Samsung’s shares climbed as much as 3.1% on Wednesday after Huang, speaking at CES in Las Vegas, stated that Samsung is "working very fast" on redesigning its memory technology.
Explore more exclusive insights at nextfin.ai.
