Samsung's stock sees biggest jump since May on NVIDIA hopes

Since then, there have been several reports that Samsung is closing to a supply deal with NVIDIA, a deal that could potentially be a worth a lot of money for the company. This possibility is making investors see value in Samsung Electronics' stock, which had been on a downward trajectory this year.

Investors keep buying Samsung shares on hopes of NVIDIA deal

Samsung's stock price was down nearly 8% year-to-date last month, before a report about the impending deal with NVIDIA shot up the share price by 3.6%, taking it above the 77,000 won ($56) range. Samsung's stock has surged another 3% today amid expectations that the deal with NVIDIA is close to being signed.

The company's shares have traded above 84,400 won or $61 today, marking the single largest increase since May this year. This followed reports that Samsung had received approval from NVIDIA for its HBM3E chips. However, Samsung later confirmed that the process was still ongoing, with the CTO of DS Department Song Jae-hyuk telling reporters that Samsung is confident of “good results” on the tests.

As a leading supplier of AI chips, NVIDIA has considerable demand for high-bandwidth memory products. There are only a few companies in the work that can meet that demand. SK Hynix, another Korean company, is already in the mix. Samsung is now looking to win some of those orders as well to further boost its competitiveness in this segment of the market.