Nvidia adds fuel to the flames: Samsung and SK Hynix compete fiercely in HBM field

News on May 5. Recently, Korean media Business Korea reported that technology giant Nvidia may be cleverly controlling the high-bandwidth memory (HBM) market, trying to compete with the two major Korean technology giants-Samsung Electronics and SK Hyundai. Create competition among strong men. The purpose of this strategy is believed to be to reduce their own procurement costs, as these two companies are currently the leaders in the HBM market.

With Samsung Electronics publicly stating that it will strengthen its leadership in technology, competition in the HBM market seems to be increasingly fierce. Analysts speculate that Nvidia may stimulate price competition between the two Korean companies by strategically leaking market information and blurring its purchasing intentions in order to obtain more favorable HBM supply prices. In fact, the price of HBM3 DRAM has soared more than 5 times since 2023, which has undoubtedly increased the cost pressure on companies such as Nvidia that rely on HBM.

According to Wall Street and industry sources, Nvidia’s stock price is trending downward on the New York Stock Exchange. At the same time, the recent performance and market expectations of its competitors AMD and other companies have also fallen short of expectations. These factors together have raised market concerns about Nvidia's future financial reports, especially considering the impact of the sharp increase in HBM prices on its cost structure.

The previous meeting between Nvidia CEO Huang Jenxun and SK Group Chairman Cui Taiyuan in Silicon Valley was interpreted by the outside world as possibly related to this market strategy. As the price war heats up, technological competition becomes increasingly fierce. In the long run, this competition may push Samsung and SK Hynix to continuously improve their technical capabilities to provide faster and cheaper HBM products, thereby enhancing the competitiveness of the entire market.

The above is the detailed content of Nvidia adds fuel to the flames: Samsung and SK Hynix compete fiercely in HBM field. For more information, please follow other related articles on the PHP Chinese website!