The Samsung logo displayed on a phone screen with binary code reflected on it, a laptop keyboard, memory card, adapter and cables are seen in this illustration photo taken in Krakow, Poland on January 30, 2023. (Photo: Jakub Porzycki/NurPhoto via Getty Images)

Jakub Pozhicki | Nurphoto | Getty Images

Shares in South Korean heavyweight Samsung Electronics jumped more than 5% on Wednesday after reports of interest from chip giant Nvidia.

Earlier on Wednesday, media reports It has emerged that Nvidia co-founder and CEO Jensen Huang hinted during a media briefing that his company is in the process of qualifying Samsung Electronics’ next-generation high-bandwidth memory chips for its GPUs.

“HBM memory is very complex and the added value is very high. We spend a lot of money on HBM,” said Huang, in comments reported by the Korea Economic Daily. He reportedly added that Nvidia is in the process of testing Samsung Electronics’ HBM chips.

“Samsung is a very good, very good company,” signaled Huang.

The qualification process will likely include checks to see if the chips meet Nvidia’s specific requirements. This does not oblige the company to buy Samsung’s supplies.

This comes after rival SK Hynix announced that it is set to supply its high-bandwidth memory (HBM) chips to customers, p Reuters says that Nvidia will be its first customer.

Shares of SK Hynix fell as much as 3.56% on Wednesday.

Samsung’s daily gain on Wednesday was the stock’s biggest percentage jump since September, according to Reuters data.

During the annual general meeting of shareholders on Wednesday, Samsung Electronics Co-CEO Kye-Hyun Kyung said the company expects to register $100 million or more in revenue from its next batch of advanced chip packaging products in 2024, according to Reuters. The firm established the advanced chip packaging unit last year.