Samsung’s Shares Climb After Nvidia Talk Offsets Profit Miss
- Korean company ratchets up push to catch up in high-end memory
- Samsung has ceded ground to SK Hynix in lucrative AI arena
Samsung Electronics Co. reported preliminary operating profit of 6.5 trillion won ($4.5 billion) in the December quarter.
Photographer: SeongJoon Cho/BloombergSamsung Electronics Co.’s shares rose after Nvidia Corp. founder Jensen Huang expressed confidence in the Korean company’s ability to resolve technical issues dogging its highest-end memory, offsetting disappointing quarterly results.
The world’s biggest memory maker shouldered hefty research and development expenses and front-end capacity expansion costs in the December quarter in its effort to catch up to SK Hynix Inc. and Micron Technology Inc. in the lucrative AI market. Samsung has struggled to get its latest products certified by Nvidia, allowing SK Hynix in particular to carve out a larger slice of the market for the high-bandwidth memory that AI accelerators depend on.