Micron Technology (NASDAQ:MU) stock fell 3.2% on Monday following reports that Samsung Electronics plans to commence mass production of next-generation high-bandwidth memory (HBM4) chips earlier than previously anticipated.
According to the reports, Samsung intends to start large-scale HBM4 manufacturing as early as this month, targeting use in Nvidia’s (NASDAQ:NVDA) artificial intelligence processors. The South Korean company has reportedly passed Nvidia’s quality certification and secured purchase orders, with production timing said to be coordinated with Nvidia’s launch plans for its next-generation AI accelerator, named Vera Rubin.
HBM chips are a strategic component for advanced AI processors, and competition for supply has intensified. Micron competes directly with Samsung and SK Hynix in producing these high-bandwidth memory components. HBM products typically carry higher margins than standard memory, and demand for them has been an important contributor to Micron’s share price performance over the last year - the stock has risen more than fourfold over the past 12 months.
During Micron’s most recent earnings call, CEO Sanjay Mehrotra said the company expected to ramp its own HBM4 production in the second quarter of 2026. Samsung’s accelerated timeline, if accurate, could provide the Korean supplier with an earlier foothold in shipments tied to Nvidia and other AI chip customers.
Samsung’s HBM4 technology is reported to deliver data rates up to 11.7 Gbps, which the company says exceeds industry standards and represents about 22% higher performance relative to previous-generation HBM3E chips. Samsung also plans to capitalize on its position as a supplier able to offer integrated solutions across logic, memory, foundry and packaging, a combination it says differentiates its offering in the market.
Investor concerns about Micron’s ability to hold market share in the increasingly contested HBM segment have surfaced in recent sessions, reflecting the significance of HBM chips to both revenue mix and margins for memory manufacturers.
Market context: The developments center on supply chain timing and quality certification milestones that align HBM production with an AI chipmaker’s product launch schedule. The story highlights competition among suppliers of specialized memory used in AI accelerators and the potential implications for companies whose stock performance has been tied to HBM demand.