[Click e-Stock] "Samsung Electronics to Benefit from Nvidia's Expanded Adoption of GDDR7"

On September 16, KB Securities analyzed that "Samsung Electronics is expected to benefit significantly in the graphics DRAM business as Nvidia expands its adoption of seventh-generation graphics DRAM (GDDR7) modules."

On this day, Kim Dongwon, a researcher at KB Securities, stated, "Samsung Electronics is likely to maintain its exclusive supplier position for Nvidia's GDDR7 for the time being," explaining the outlook.

Samsung Electronics' GDDR7 has improved bandwidth and power efficiency by 30% compared to previous generations and currently accounts for one-third of all graphics DRAM. The production capacity for GDDR7 at the Pyeongtaek plant is also expected to more than double. Researcher Kim said, "Following the RTX 50 series graphics processing units (GPUs), Nvidia is highly likely to use Samsung's GDDR7 in the RTX Pro 6000 Blackwell, the artificial intelligence (AI) accelerator B40, and the Rubin CPX inference-specialized GPU scheduled for release next year."

Regarding the memory semiconductor market next year, he predicted a high possibility of facing a supply shortage. Kim explained, "The growth rate of memory production is falling short of demand growth, and as AI memory demand expands from high-bandwidth memory (HBM) to include low-power double data rate 5X (LPDDR5X) and GDDR7, combined with the general server replacement cycle, the supply-demand situation could become tight."

Competitors are focusing their capabilities on the production of fifth-generation HBM (HBM3E), making Samsung Electronics the only company considered capable of responding to Nvidia's demand. Researcher Kim pointed out, "Samsung Electronics, which has abundant production capacity for both general-purpose DRAM and sixth-generation HBM (HBM4), is expected to benefit directly," adding, "In particular, GDDR7 commands a price premium over DDR5, and the expansion of shipments is highly likely to lead to improved profitability in the DRAM business."

This content was produced with the assistance of AI translation services.