Samsung Electronics shares rallied on Tuesday after Nvidia’s chief executive announced that the South Korean manufacturer is producing the chip behind Nvidia’s new AI inference processor. The disclosure came during Nvidia’s GTC developer conference in California on Monday, where Nvidia introduced the new inference processor built on technology from the startup Groq.
Speaking at the event, Nvidia CEO Jensen Huang expressly thanked Samsung in relation to the chip’s production, saying: "I want to thank Samsung who manufactures the Groq LP30 chip for us and they’re cranking as hard as they can." He added that the chips were in production and would be shipped in the second half of this year.
Samsung used the same conference to display the Nvidia chips manufactured using its 4-nanometer process, drawing attention to its role in the supply chain for the new inference processors.
On the market, Samsung shares rose as much as 5% intraday. As of 0127 GMT on Tuesday, the stock was trading up 3.9% at 196,000 won, after earlier touching 198,000 won. The broader market also moved higher, up 2.4% at the same reporting time.
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Market participants will be watching production and shipping timelines closely, given the announcement that chips are currently in production and earmarked for shipment in the second half of the year. Samsung’s public display of the 4-nanometer-made chips at GTC reinforced its manufacturing role for this specific AI inference processor.
Summary
Samsung’s stock rose after Nvidia’s CEO said Samsung is manufacturing the Groq LP30-based AI inference chips, which are in production and expected to ship in the second half of the year. Samsung showcased the 4-nanometer-made chips at the developer conference, and the company’s share price moved higher as the broader market gained.
Key points- Samsung confirmed as manufacturer for Nvidia’s Groq LP30-based AI inference processor - a development for the semiconductor manufacturing sector.
- CEO Jensen Huang said the chips are in production and are slated to ship in the second half of the year - relevant to supply-chain and production timing for AI hardware.
- Samsung’s shares reacted positively, rising intraday and trading higher alongside a broader market gain.
- Timing risk - the chips are reported to be in production and scheduled to ship in the second half of the year, which leaves room for potential delays affecting deliveries and market expectations.
- Market reaction risk - the share-price movement reflects investor sentiment and could reverse if production or shipping details change, impacting equity markets and semiconductor sector valuations.