Samsung Stock Surges as CTO Claims HBM4 Victory Over Rivals

TLDR

• Samsung CTO Jaihyuk Song announced HBM4 mass production begins this month with Nvidia as the first customer, reversing earlier share losses
• ByteDance is developing SeedChip AI processor and negotiating with Samsung to produce 100,000-350,000 units in 2026
• Samsung executive claims company has regained memory industry leadership after losing ground to SK Hynix during AI boom
• Severe memory supply shortage expected through 2027 as AI infrastructure demand accelerates
• ByteDance plans $22 billion AI spending this year including Nvidia chips and potential Samsung memory components

Samsung Electronics shares turned positive Wednesday following comments from President and CTO Jaihyuk Song about the company’s HBM4 technology. Song declared Samsung has reclaimed the top position in the memory industry.

Mass production of HBM4 will start this month. Nvidia is set to be the first customer for the advanced memory chips. The announcement marks Samsung’s comeback after SK Hynix dominated high-bandwidth memory orders during the AI surge.

ByteDance Manufacturing Partnership Takes Shape

ByteDance is creating its own AI chip and discussing production with Samsung, Reuters reported. The TikTok parent wants sample chips by late March. Initial production targets at least 100,000 units this year for AI inference work.

The project, called SeedChip, could scale to 350,000 units. Discussions with Samsung include access to memory chips as supply remains tight. ByteDance denied the chip project details but didn’t elaborate. Samsung declined comment.

ByteDance previously partnered with Broadcom on AI processor development. The company plans over $22 billion in AI procurement for 2026. Spending covers Nvidia chips and other infrastructure needed for AI operations.

Memory Shortage Warning

Song predicted a severe memory supply crunch extending through 2026 and 2027. The forecast comes as Samsung and SK Hynix stock prices have climbed since September on shortage concerns.

Both South Korean companies now rank as the country’s most valuable firms. They’ve benefited from AI-driven memory demand that shows no signs of slowing. Samsung’s HBM4 launch with Nvidia could reshape the competitive landscape.

The memory shortage affects companies worldwide racing to build AI infrastructure. ByteDance’s chip development reflects industry efforts to secure supply chains. Samsung’s manufacturing capacity positions it to serve multiple customers pursuing custom AI processors.

Samsung closed the technology gap with SK Hynix in recent months. The HBM4 production timeline and Nvidia partnership provide concrete evidence of progress. Song’s public confidence signals Samsung believes its technical challenges are resolved.

The ByteDance manufacturing talks add another revenue stream as Samsung ramps HBM4 production. Custom chip manufacturing could complement Samsung’s own memory business as AI companies seek alternatives to standard processors.

Samsung’s shares had dropped earlier in the session before Song’s remarks. The reversal shows investor sensitivity to news about the company’s HBM technology and customer relationships.

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