At the beginning of last month, there were rumors about the possible conclusion of a contract between Samsung and NVIDIA for the supply of HBM3 memory for the development of computing accelerators. So far, only the competitor SK hynix has supplied such memory for NVIDIA’s needs. However, now Bloomberg reports that Samsung is having trouble closing such a deal, highlighting the lag in the Korean giant’s shares in relation to SK Hynix’s price growth dynamics this year.
While Samsung Electronics shares have risen 24% this year, SK Hynix has seen its prices rise 67%. In fact, the gap between them has reached its maximum value in the last decade. The general situation in the memory chip market this year cannot be considered favorable, so investors have turned their attention to the HBM memory segment, which is in demand in the computing accelerator segment, in which NVIDIA currently occupies a leading position. Since the demand for their products significantly exceeds the manufacturers’ capacities, the production volumes of HBM3 memory are also growing rapidly, and SK hynix, which has a contract with NVIDIA, is benefiting more from this trend.
However, as Bloomberg explains, analysts are beginning to prepare the audience for the full entry of Samsung products into this market. In the next 12 months, the company’s share price is expected to increase by 30%, while SK hynix’s further growth potential is limited to 20%. For example, experts at Eugene Investment & Securities are convinced that the gap with SK Hynix will narrow to four to five months if Samsung starts shipping a new version of HBM3 this year. Next year, Samsung will continue to close the gap with SK hynix, although the latter still has a chance to remain a leader in this market segment. As we know, Samsung wants to offer HBM4 memory in 2025 and will therefore not be content with playing catch-up for so long.