Nvidia approves Samsung's HBM3E chips; Micron dips on news

[Samsung Electronics America Corporate office in Ridgefield Park, NJ, USA.]
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Samsung's (OTCPK:SSNLF [https://seekingalpha.com/symbol/SSNLF]) 12-layer, third-generation high-bandwidth memory chips, or HBM3E, have received approval for usage by Nvidia (NASDAQ:NVDA [https://seekingalpha.com/symbol/NVDA]), according to a report by South Korea's News1.

Nvidia CEO Jensen Huang sent a letter to Samsung Executive Chairman Lee Jae-yong stating he plans to equip the GB300 system with the HBM3E, according to the report [https://www.news1.kr/industry/electronics/5934448]. The companies are in the final stages of establishing the quantity, pricing and schedules.

Micron Technology (NASDAQ:MU [https://seekingalpha.com/symbol/MU]) is already a key supplier of HBM solutions, including HBM3E, to Nvidia. Its shares slipped 3% during afternoon trading on Thursday. SK Hynix is another significant provider of memory chips to Nvidia.

Samsung has reportedly been trying to get its HBM3E chips approved by Nvidia for more than a year. It's unknown how long Nvidia will incorporate the HBM3E technology, as the industry will eventually shift to the next-generation HBM4 memory chips.

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