Samsung progresses on Nvidia partnership, eyes 100% revenue growth at HBM by 2025

Samsung Electronics Co Ltd (KS:005930 ) said qualification testing with Nvidia (NASDAQ:NVDA ) was “progressing well” and expected its revenue high-bandwidth memory (HBM) business to double by 2025, at a conference organized by Citi.

The South Korean tech giant also said it plans to repurchase 10 trillion won ($7.5 billion) worth of shares, citing undervaluation of its stock.

Samsung will buy back 3 trillion won of shares in the next three months, with the remaining 7 trillion won to be completed within a year. Samsung is yet to decide on what they will do with the treasury shares, although cancellation is likely to be the main use, with some potential for employee incentives.

Samsung added that most technological hurdles already cleared in the process with Nvidia, key player in the AI and high-performance computing markets. The company expects the remaining tests to conclude soon.

While Nvidia garners much of the market’s attention, Samsung highlighted that over 40% of HBM demand comes from non-Nvidia clients. This has enabled Samsung to maintain a 40-45% share in the HBM market even before significant Nvidia shipments.

Samsung expects its high-bandwidth memory revenue to grow 100% year-on-year in 2025 as it works on redesigning its I/O circuits to improve performance. The optimized version is set to begin mass production in mid-2025, with next-generation HBM4 chips slated for production by late 2025 or early 2026.

Source: Investing.com