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Shares ​of South Korean tech giant, Samsung Electronics, witnessed a significant surge of over 5% on Wednesday. This ‍increase was triggered ⁤by reports of ⁤interest from the renowned ​chip manufacturer, Nvidia.

Nvidia’s Interest in Samsung’s High-Bandwidth Memory Chips

Earlier on the same day, media outlets reported that Nvidia’s co-founder and CEO, Jensen Huang, hinted ⁤at his company’s interest in Samsung Electronics’ new-generation high-bandwidth ⁢memory chips. These chips are​ currently being⁤ qualified for use in Nvidia’s ⁤graphics processing units.

“HBM memory ⁣is​ very complicated and​ the value added is very high. We ⁣are spending a ⁢lot of money on HBM,” Huang was​ quoted saying by the Korea Economic Daily. He further added that Nvidia is in​ the process of testing Samsung Electronics’‌ HBM chips.

Japan’s⁣ Nikkei publication also reported ⁢the news, stating that Nvidia is⁢ looking⁤ to procure the high-bandwidth memory chips⁢ from Samsung. However, it’s important to note that the qualification⁢ process⁢ does not obligate Nvidia to purchase Samsung’s⁢ supply.

Impact on the⁤ Market

This development comes after Samsung’s rival, ‍SK Hynix, announced its plans to deliver its high-bandwidth memory (HBM) chips to customers. Reuters reported that Nvidia would be its first client. Following this news,​ shares of SK Hynix dropped by as much as 3.56% on Wednesday.

Meanwhile, Samsung’s​ stock experienced its largest percentage jump since September, according to ​Reuters data. During the annual general shareholders’ meeting on Wednesday, Samsung Electronics co-CEO Kye-Hyun Kyung announced that the company expects to generate $100 million or more⁣ in revenue from its‍ next ​batch of ⁣advanced chip-packaging products in 2024.