Samsung shares surge 5% amid reports of clearing Nvidia quality test report; South Korea's Kospi hits record high

Samsung Electronics shares jumped more than 5% on Monday, September 22, amid reports that the South Korean chipmaker has won long-awaited approval from Nvidia Corp. for its high-bandwidth memory chips, marking a significant breakthrough for the company.

Samsung's share price jumped 5.4% to its highest level since August 2024, according to a Bloomberg report. Meanwhile, the chipmaker has rallied 33% in a year.

Why are Samsung shares skyrocketing today?

The gains in Samsung share price come after a local media report, including Korea Economic Daily, said that Samsung’s 12-layer HBM3E product recently passed Nvidia’s qualification tests.

This paves the way for using components in AI accelerators that are crucial for training models ranging from ChatGPT to DeepSeek, ultimately enabling Samsung to compete with SK Hynix Inc. in the high-end product segment.

The company has also expanded its presence in other segments of the semiconductor market. In July, as per media reports, it struck a $16.5 billion chipmaking deal with Tesla Inc., reinvigorating its contract-manufacturing business—a division many investors had largely dismissed.

While Samsung’s shipments to Nvidia are expected to remain limited this year, as existing orders have already been fulfilled by competitors SK Hynix and Micron, the development still represents a significant milestone.

On technical charts, Samsung has broken out of a bullish flag formation on the weekly charts at 72.1, opening the door for an upside move toward 95 levels, said Anshul Jain, Head of Research at Lakshmishree.

"The volume structure is supportive, with strong activity on up days and lighter participation on down days, signaling accumulation and favorable conditions for bulls. While the stock remains stretched from its 10-day and 20-day EMAs, which may cause a short pause or mild consolidation, the broader structure remains highly bullish. With momentum, volumes, and trend alignment in place, Samsung looks poised for a sustained uptrend toward higher targets," he added.

South Korean stock market at record high

Apart from Samsung, other stocks from the semiconductor industry also rallied, driving the South Korean stock market's benchmark index KOSPI to a record high.

So far this month, semiconductor stocks have been leading the KOSPI's rally on hopes of robust chip demand driven by the artificial intelligence boom.

KOSPI rose as much as 1.07% to a record high level of 3,482.25.

Other top stocks like battery maker LG Energy Solution climbed 0.29%, while Hyundai Motor and sister automaker Kia Corp were up 1.64% and unchanged, respectively.

(With inputs from agencies)

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