Samsung Shares Surge on New Advanced Memory Chips

Samsung Electronics' shares experienced a significant surge on Friday as the market responded positively to the company's latest advanced memory chips. These chips are in high demand due to the ongoing artificial intelligence (AI) frenzy.

The South Korean chipmaker saw its shares jump by 6.1%, closing at 71,000 won ($53.57). This marks the strongest daily percentage gain since January 8, 2021, according to FactSet. Meanwhile, the benchmark Kospi index gained 0.3% for the day.

Samsung announced on Friday that it has successfully developed new 32-gigabit double data rate 5 DRAM chips. These chips are considered the most advanced 12-nanometer DDR5 chips available and consume 10% less electrical power compared to existing 16-gigabit chips, according to Samsung's statement.

This breakthrough in chip technology positions Samsung to cater to the growing need for high-capacity DRAM in the era of AI and big data. Mass production of these new chips is expected to commence by the end of 2023.

In addition to this positive news, local media reports revealed that Samsung will join industry rivals SK Hynix and TSMC in supplying new high-bandwidth-memory3 (HBM3) chips to U.S. chipmaker Nvidia. These chips will be used in Nvidia's graphics processing units (GPUs) for AI applications.

Samsung is anticipated to begin supplying its own HBM3 chips for Nvidia's high-performance GPU products, such as H100, as early as October, as reported by the Korea Economic Daily.

This recent development has contributed to the overall optimism surrounding Samsung's growth prospects and solidifies its position within the competitive chip market.