Samsung Electronics (005930.KS) said on Thursday its chairman met with the heads of Meta (META.O), Qualcomm (QCOM.O) and Amazon (AMZN.O) this week to discuss cooperation and that topics included artificial intelligence, cloud services and chips.Meta’s Mark Zuckerberg invited Jay Y. Lee to his home on Tuesday and their discussions spanned AI as well as virtual … Read more
Nvidia’s stock increased by nearly 2% to 1 after announcements at their annual developer conference in San Jose, California. The company revealed its new flagship AI processor, Blackwell, expected to ship later this year, with CEO Jensen Huang highlighting a potential data center market worth over 0 billion. Nvidia is transitioning from selling individual chips to complete systems to capture a larger share of data center spending. The Blackwell processor, developed in collaboration with TSMC to avoid previous bottlenecks, is claimed to be 30 times faster at certain tasks than its predecessor and is priced between ,000 and ,000. Nvidia is also working with Samsung Electronics and SK Hynix on high bandwidth memory chips, with SK Hynix beginning mass production of HBM3E chips for Nvidia. Over the past 12 months, Nvidia’s stock has more than tripled, making it the third-most valuable company in the US stock market. Despite a high valuation, analysts have raised their future earnings estimates for Nvidia, with major customers like Amazon, Google, Meta Platforms, Microsoft, OpenAI, and Tesla expected to use the new chip. Morningstar analysts predict Nvidia will maintain its “best-of-breed” status in the AI industry and have increased their revenue forecasts for the company’s data center business.
Micron Technology’s stock surged 18% earlier this week and was set to open at a record high due to a strong revenue forecast, driven by high demand for AI hardware. Other chip firms like Western Digital, Advanced Micro Devices, and Broadcom also saw their stocks rise. Micron announced that its high-bandwidth memory (HBM) chips, crucial for AI development, are sold out for 2024, with most of its 2025 supply already allocated. The company, a supplier to Nvidia along with South Korea’s SK Hynix, is expected to add nearly billion to its market value. Micron’s shares have increased over 60% in the past 12 months, with expectations of growing its share in the HBM market. The company’s forecast for adjusted gross margin is above market estimates, attributed to the tight supply and high demand for HBM chips.