Samsung shares soar as Nvidia confirms major AI chip manufacturing deal

Samsung Electronics witnessed a significant surge in its market value on Tuesday, with shares rising as much as 5% following a high-profile manufacturing announcement from Nvidia.

The global chip-making leader, currently valued at over $4.3 trillion, confirmed a deepening partnership with the South Korean giant to bolster the burgeoning artificial intelligence sector.

Speaking at Nvidia’s GTC developer conference in California, CEO Jensen Huang revealed that Samsung is responsible for producing the company's latest AI processors.

Addressing the audience on Monday, Huang highlighted the critical role of South Korean engineering in Nvidia's supply chain. "I want to thank Samsung who manufactures the Groq LP30 chip for us and they're cranking as hard as they ‌can," he said.

He further confirmed that these chips are already in production and are scheduled for shipment during the second half of this year.

During the conference, Samsung showcased these advanced chips, which utilize its sophisticated 4-nanometer manufacturing process.

The partnership comes as Nvidia unveils its next-generation 'Feynman' chip, a revolutionary processor designed to transform the AI industry.

Following the announcement, Samsung shares were trading up 3.9% at 196,000 won by 0127 GMT, significantly outperforming the broader market's 2.4% gain.

This collaboration marks a pivotal moment for both firms, as Nvidia seeks to maintain its status as the world’s most valuable company through reliable manufacturing at scale.

The integration of Samsung's 4-nanometer technology is expected to provide the necessary hardware foundation for the next wave of global AI inference and processing power.