
Samsung Stock: Teams Up With Nvidia to Build AI-Powered Chip Factory
Samsung to Acquire 50,000 Nvidia GPUs for New “AI Megafactory” to Revolutionize Chip Manufacturing
Samsung is joining forces with Nvidia to launch a massive AI-driven manufacturing hub. The South Korean giant plans to purchase 50,000 Nvidia GPUs to power its new “AI Megafactory.” This ambitious project aims to automate semiconductor production for mobile devices and robotics, improving chip yields and speeding up manufacturing processes. While Samsung has yet to reveal a construction timeline, the move signals a major step forward in AI-enabled chip fabrication.
A $5 Trillion Partner and a Global AI Push
This deal deepens a partnership that has spanned over two decades between Samsung and Nvidia. Recently, Nvidia CEO Jensen Huang met with Samsung Chairman Jay Y. Lee in Seoul, underscoring the growing collaboration between the two tech leaders. Fresh off reaching a $5 trillion market capitalization, Nvidia continues to expand its influence through strategic partnerships. Huang revealed that the company currently holds $500 billion in GPU orders across its Blackwell and Rubin architectures.
Nvidia executives noted that Samsung’s integration of their GPUs is expected to make lithography processes up to 20 times more efficient. Additionally, Samsung will adopt Nvidia’s Omniverse simulation platform to improve accuracy and precision in production workflows.
The HBM Memory Race Intensifies
Alongside the AI Megafactory announcement, Samsung confirmed ongoing “close discussions” to supply Nvidia with next-generation HBM4 high-bandwidth memory chips. These memory units are critical for powering large AI models and represent a key battlefield in the AI hardware race.
Samsung aims to launch HBM4 commercially in 2026, positioning itself against rival SK Hynix, which plans to begin shipping HBM4 later this year. Currently, Samsung sells its advanced HBM3E chips to all major customers, including Nvidia.
Analysts suggest that a successful HBM4 launch and supply deal with Nvidia could help Samsung reclaim significant market share lost in previous AI memory cycles. Jeff Kim of KB Securities commented, “If Samsung supplies HBM4 to Nvidia, it could secure a major position it missed in prior cycles.”
AI Megafactory: Innovation Hub and Industry Implications
The new facility will function not only as a production plant but also as a research center for next-generation AI chips. Samsung will leverage the Nvidia GPUs to simulate design workflows, train internal AI models, and optimize manufacturing operations.
This collaboration highlights South Korea’s expanding role in the global AI supply chain. Nvidia’s Asia-Pacific Vice President, Raymond Teh, stated that the company is working closely with the Korean government to advance national AI initiatives.
Market Reaction and Future Outlook
Following the announcement, Samsung’s share price surged over 4%, extending its impressive 60% rally since July. Investors are optimistic that Samsung’s renewed focus on AI technologies and memory chip sales will fuel sustained growth well into 2026.
In summary, Samsung’s strategic purchase of Nvidia GPUs and the co-development of advanced memory technologies marks a significant milestone in semiconductor manufacturing. This partnership not only strengthens Nvidia’s global AI leadership but also positions Samsung at the forefront of next-generation AI chip production.
https://coincentral.com/samsung-stock-teams-up-with-nvidia-to-build-ai-powered-chip-factory/
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