Samsung Electronics Progress with Nvidia
Samsung Electronics Co Ltd (KS:005930) announced that qualification testing with Nvidia (NASDAQ:NVDA) is "progressing well," with expectations to double its revenue in high-bandwidth memory (HBM) business by 2025 at a Citi conference.
Share Repurchase Plan
The South Korean tech giant plans to repurchase 10 trillion won ($7.5 billion) of shares, citing stock undervaluation. In the next three months, Samsung will buy back 3 trillion won of shares, completing the remaining 7 trillion won within a year. Although Samsung hasn’t decided on treasury shares' future, cancellation likely remains the main focus, with some potential for employee incentives.
Technological Advancements
Samsung stated that most technological hurdles with Nvidia, a key player in AI and high-performance computing, have already been cleared, with expectations for remaining tests to conclude soon.
Market Demand
Despite Nvidia’s prominence, Samsung noted that over 40% of HBM demand comes from non-Nvidia clients, enabling it to maintain a 40-45% market share in HBM prior to significant Nvidia shipments.
Revenue Growth Expectations
Samsung anticipates its high-bandwidth memory revenue will grow 100% year-on-year by 2025, as it works on redesigning its I/O circuits to enhance performance. Mass production of the optimized version is expected to begin in mid-2025, with next-generation HBM4 chips slated for production by late 2025 or early 2026.
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