NVIDIA's approval of Samsung's HBM3E chips may not yield immediate profits due to supply deals

NVIDIA's approval of Samsung's HBM3E chips marks a pivotal moment for the South Korean tech giant, yet immediate financial gains may be limited.

The certification process for Samsung's HBM3E chips is reportedly nearing completion, with NVIDIA branding them as 'useful.' However, NVIDIA has already secured the majority of its supply from competitors SK Hynix and Micron.

This means that while Samsung may see a gradual increase in orders, the initial supply may be limited. As NVIDIA diversifies its supply chain, there is potential for Samsung to enhance its market share in the lucrative HBM3E segment, but this growth is expected to be slow.

Analysts suggest that the demand for high-bandwidth memory chips is soaring due to the increasing need for AI accelerators, which could eventually benefit Samsung if it can ramp up production effectively.

NVIDIA's approval of Samsung's HBM3E chips is a significant milestone, but immediate profits may be elusive. Despite the certification, NVIDIA has secured most of its supply from SK Hynix and Micron, suggesting that Samsung's market share growth could be gradual as supply ramps up.