Samsung Shares Rise 5% After NVIDIA AI Chip Deal!

From chatbots to advanced enterprise tools, AI is becoming a bigger part of everyday technology. That growing use is putting pressure on companies to build faster and more efficient chips and no single player can do it alone anymore.

AI demand is rising quickly, and it’s starting to change how chip companies work together. Instead of working in isolation, more companies are joining hands to build the kind of high-performance processors needed to keep up.

 

TL;DR

 

• Samsung Electronics shares rose up to 5% after its AI chip deal with NVIDIA.
• New AI chips are already being made and will ship later this year.
• A recovery is expected, but weak phone demand could still hurt growth.

 
Shares of Samsung Electronics moved higher on Tuesday after Jensen Huang revealed that the company is manufacturing NVIDIA’s latest AI chips. The update, shared at NVIDIA’s GTC developer conference in California, helped lift sentiment around Samsung’s foundry business.

“I want to thank Samsung who manufactures the Groq LP30 chip for us and they're cranking as hard as they can,” Huang said, adding that the chips are already in production and will be shipped in the second half of the year.

Samsung also showcased these NVIDIA chips built on its 4-nanometer process at the event, highlighting its work in advanced chip manufacturing. This matters for its foundry division, which has reported billions of dollars in losses in recent years. Now, some analysts believe the business could move closer to breaking even by next year.
 
The market reacted quickly. Samsung shares were up 4.3% to 196,800 won after briefly touching 198,000 won, doing better than the broader market. Still, there are a few concerns. Weak demand in the mobile segment, partly due to rising memory chip prices, could continue to affect performance in the near term.

At the same time, there’s growing interest in a possible partnership between Advanced Micro Devices and Samsung. Lisa Su is expected to meet Samsung Chairman Jay Y. Lee in South Korea, with discussions likely around memory and logic semiconductors.

With demand for AI chips continuing to grow, Samsung’s role in NVIDIA’s supply chain could turn out to be an important step for its foundry business and its position in the global chip market.