Samsung HBM3 Finally Passes NVIDIA’s Qualification Tests For H20 Accelerators, No Word On HBM3E Breakthrough Yet

Samsung has finally passed NVIDIA's qualification stages for its HBM3 memory; however, the firm has experienced a roadblock with its relatively advanced HBM3e process.

The Samsung-NVIDIA fiasco surrounding HBM qualification is quite an extensive one and a rollercoaster ride, considering that there were multiple rumors previously reporting on a qualification failure.

Now, new reports have emerged citing that the Korean giant has finally made it. This time, outlets such as Reuters and BusinessKorea are disclosing the development, which not only shows the credibility of the news in general but also reflects Samsung's stock market performance, which we'll discuss later on.

It is said that Samsung's HBM3 has gained NVIDIA's trust, and Team Green is ready to incorporate the standard in its product lineup, but there's a twist here. Initially, NVIDIA will employ Samsung's HBM3 memory for its China-compliant H20 AI GPUs only, and the reason behind this move hasn't been disclosed yet; it's certainly a precautionary attempt from NVIDIA before utilizing Samsung's products into its mainstream products. The Korean giant's HBM3 might need to pass additional tests before seeing its integration into superior AI products as well.

The development is seen as "bearish" in the markets because Samsung still hasn't witnessed a breakthrough in its HBM3E memory process. This particular memory technology is mainstream in the markets, and investors were specifically focused on information surrounding HBM3E. With no update given, Samsung Electronics' stock fell by 2.3% on the Korean stock market (KOSPI), reflecting investor sentiment.

However, we do expect Samsung's HBM3E to witness a breakthrough as well, given that NVIDIA is determined to expand its supply chain, and with the immense Blackwell demand that is coming in from the markets, it would only be a wise move from Team Green to scale up its chain of suppliers. For Samsung, given that the firm manages to receive approval for HBM3 and HBM3E, the company could very well be ready for an upsurge in revenue, given that the company's production lines are far greater than competitors like SK hynix.