Samsung secured Nvidia approval to supply AI chips, diversifying Nvidia manufacturing partners beyond TSMC

Samsung Electronics has passed a key round of testing for its AI memory chips, with Nvidia expected to greenline the South Korean tech giant as a supplier. The announcement sent Samsung stock up nearly 5% in South Korea on Monday, hitting a one-year high. According to multiple sources, Samsung's HBM3E memory chips have cleared Nvidia's performance benchmarks, with final certification expected soon.

These high-bandwidth memory chips are essential for powering large-scale AI systems and data center GPUs. The 12-layer HBM3E chips are reportedly qualified for use in AI accelerators that support applications like ChatGPT, DeepSeek, and other advanced models. Goldman Sachs analyst Giuni Lee noted that the approval would be a significant credibility boost for Samsung, especially after previous delays had raised concerns over its AI chip capabilities.

If finalized, the Nvidia partnership could help Samsung challenge SK Hynix's lead in the high-performance memory market. The timing is particularly critical as Nvidia looks to expand its supplier base amid surging demand for AI hardware. Securing additional suppliers like Samsung could help Nvidia maintain its dominance while controlling production costs and timelines.

However, near-term growth may be constrained. Samsung's HBM shipments to Nvidia will likely remain limited this year, as most 2025 orders are already committed to SK Hynix and Micron. But analysts say this certification sets the stage for a more competitive 2026 and beyond, with Samsung positioned to capture a larger share of the lucrative AI memory market.