Samsung Electronics is poised to initiate volume manufacturing of its next-generation HBM4 memory later this month, according to weekend media reports. Shipments to Nvidia for use in graphics processors are anticipated to commence following the Lunar New Year break on February 17.
Critical Timing for AI Memory
High-bandwidth memory is a crucial component for AI servers, with demand concentrated among a few major clients and supply remaining constrained. Successful production ramp-up can quickly boost profit forecasts, while any manufacturing hiccups could equally swiftly dampen expectations.
The company's shares closed Friday's session at 158,600 won, declining 0.44% for the day. Trading ranged between 151,600 and 160,300 won during the session.
Competitive Pressure and Technical Specifications
Samsung has trailed rival SK Hynix in supplying the latest HBM technology for Nvidia's AI accelerators. Previous supply delays have impacted both profitability and stock performance. The company's HBM4 chips are designed to achieve speeds up to 11.7 gigabits per second, exceeding the JEDEC standard's 8 Gbps threshold.
Nvidia CEO Jensen Huang has indicated the company's Vera Rubin platform has reached "full production" and will be paired with HBM4 chips before year-end. Meanwhile, Samsung executives recently warned that "a significant shortage of memory products across the board is expected to continue for the time being."
Manufacturing Challenges and Investor Focus
The transition from prototype to consistent weekly shipments presents significant hurdles for advanced memory manufacturers, with yield issues and extended qualification processes potentially delaying deliveries. The market typically reacts swiftly to early signs of production difficulties.
Investors await further details on production timing, volumes, and yields when Seoul trading resumes Monday. The company has scheduled a Nomura tech tour for February 10, following recent earnings discussions, where updates on HBM capacity, customer qualifications, and spending plans are expected.
Market participants will also monitor Nvidia's GTC event in San Jose from March 16-19 for potential announcements regarding Rubin's rollout or HBM4 supply chain developments that could directly affect Samsung's stock.
