What's Going On With Nvidia Stock Friday?

Nvidia Corp NVDA will likely get relief from supply chain pressure as reports suggest Samsung Electronics Co SSNLF has won the contract to supply advanced memory chips to the artificial intelligence kingpin. 

The South Korean electronics giant will provide a newer generation of memory HBM3 to Nvidia as it struggles to keep up with the surging AI demand, Bloomberg reports.

Also Read: Google Cloud and Nvidia Join Forces: Analysts Optimistic on Alphabet's AI-Driven Future

Previous reports indicated that Nvidia's supply issues could create opportunities for Advanced Micro Devices, Inc AMD and Samsung.

Citigroup analysts have documented Samsung's crucial role in supplying HBM3, likely to commence in the fourth quarter. 

This development marks a shift as SK Hynix Inc, a chief competitor, had been Nvidia's exclusive source of high-bandwidth memory tailored for AI accelerators. 

Reportedly, Samsung's chips successfully passed quality assessments by the U.S. chip designer, marking a pivotal milestone. The supply of these essential memory chips will likely kick off by October.

The collaboration promises mutual benefits. For Nvidia, adding Samsung as a supplier for HBM3 could translate into improved cost-efficiency, enhanced performance, and a more consistent supply chain. 

Samsung will likely emerge as a significant player in HBM3 supply, positioning the company to reap the rewards of the burgeoning memory and AI computing markets.

Citigroup's analysts have raised their price target for Samsung from 110,000 to 120,000 won, reflecting the positive outlook on Samsung's trajectory as a critical supplier for Nvidia's memory requirements.

The positive news has resonated across the industry, driving up share prices for Samsung and related suppliers like Hana Micron Inc and Daeduck Electronics Co.

Samsung is preparing to introduce a new HBM chip in 2023, positioning itself at the forefront of memory technology. 

Meanwhile, the U.S. continues to impose sanctions on countries, this time being the Middle East after China.

Price Action: NVDA shares closed higher by 0.18% at $493.55 on Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.