What's Going On With Nvidia Stock Monday?

Nvidia Corp NVDA remained the cynosure of investor attention as it continued buying the "high bandwidth memory" (HBM) chips despite rising prices to meet its GPU orders contributing to a supply crisis for more minor market participants.

SK Hynix and Samsung Electronics Co, Ltd SSNLF command 90% of the global market in the HBM chip market, a critical component for AI servers. The chipmakers see rising investor excitement over their AI development moat.

Both companies plan to double HBM chip production, despite operating losses in the memory sector due to the supply glut, Financial Times reports.

HBM chips are vital for AI servers and large language models, and their demand surged, leading to a 95% drop in Samsung's Q2 operating profit, while SK Hynix reported a $2.28 billion loss.

Due to their high prices, HBM chips will account for about 3% of overall DRAM shipments and 8-9% of DRAM revenues this year.

Nvidia and Advanced Micro Devices, Inc AMD have requested samples of SK Hynix's next-generation HBM3E chips, indicating their importance in GPUs used in data centers and AI training.

Nvidia is ready to pay a premium for faster dispatch of SK Hynix's HBM3E chips. 

Samsung also mass-produces HBM3 chips and plans to release its next-generation HBM3P chip later this year, doubling its HBM capacity between 2023 and 2024.

Micron Technology, Inc MU lagged behind its Korean rivals but announced sampling of its HBM3 Gen 2 chip to close the gap.

TrendForce expects HBM chip demand to grow 60% in 2023, with SK Hynix projected to have a 53% market share, followed by Samsung at 38% and Micron at 9% by 2024.

Nvidia was the quickest chipmaker to hit the trillion-dollar market cap, thanks to the ChatGPT frenzy. The stock gained 227% YTD.

Price Action: NVDA shares traded higher by 0.35% at $469.13 premarket on the last check Monday.