Samsung Electronics' (KRX:005930) shares were trading 3.4% higher after Nvidia Corp (NASDAQ:NVDA, ETR:NVD) founder Jensen Huang expressed optimism about the Korean tech giant’s ability to address issues with its high-bandwidth memory, which is crucial for AI applications.
This helped offset disappointing fourth-quarter results, with operating profit falling to around $4.5 billion, below analyst expectations.
Samsung has struggled to secure Nvidia certification for its latest products, lagging behind SK Hynix, which saw profits soar in October and has expanded AI-focused investments.
Faced with weak demand for mobile and TV chips, Samsung is ramping up efforts to reclaim market share in AI memory.
Analysts remain cautious, citing Samsung’s exposure to legacy chips and competition from Chinese manufacturers. However, industry watchers believe the firm will eventually become a key player in the AI chip market.