Category: semiconductors

SK Hynix shares hit multidecade highs, Samsung also surges as chipmakers partner with OpenAI

Shares of South Korean chip heavyweights Samsung Electronics and SK Hynix surged Thursday, a day after the two companies partnered with artificial intelligence major OpenAI as part of the U.S. firm’s Stargate initiative.

Shares of Samsung hit their highest levels since January 2021, rising over 4%, while SK Hynix stock surged more than 9% to reach its highest since 2000.

OpenAI said in a statement that this partnership will “focus on increasing the supply of advanced memory chips essential for next-generation AI and expanding data center capacity in Korea.” The ChatGPT-maker added that the two chipmakers plan to scale up production of advanced memory chips, which are critical to powering its AI models.

The announcement came as OpenAI CEO Sam Altman met with South Korean President Lee Jae Myung in Seoul, along with top leaders from Samsung and SK Hynix.

Earlier this month, SK Hynix announced that it was ready to mass-produce its next-generation high-bandwidth memory (HBM) chips, cementing its leading position in the AI value chain. HBM is a type of memory used in chipsets for artificial intelligence computing, including those from global AI giant Nvidia, a major client of SK Hynix.

HBM4 chips are expected to be the primary AI memory chips needed for Nvidia’s next-generation Rubin architecture—a more powerful AI chip designed for global data centers.

SK Hynix has been a main chip supplier to Nvidia, while rival Samsung has reportedly been working to get its HBM4 chips certified by Nvidia.

This is breaking news; please check back for updates.
https://www.cnbc.com/2025/10/02/sk-hynix-samsung-shares-openai-stargate-korea.html

NVIDIA acquires $5B stake in Intel, plans joint chip development

**NVIDIA Acquires $5B Stake in Intel, Plans Joint Chip Development**

*By Mudit Dube | Sep 18, 2025, 05:09 PM*

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NVIDIA has announced a significant $5 billion investment in Intel, marking a potential game-changer for the semiconductor industry. Through this deal, NVIDIA will acquire Intel common stock at $23.28 per share—slightly below Wednesday’s closing price of $24.90 but above the recent government purchase price of $20.47.

### NVIDIA Becomes a Major Intel Shareholder

This strategic move will make NVIDIA one of Intel’s largest shareholders, holding a stake of 4% or more once new shares are issued. The investment provides a much-needed boost to Intel, which has faced challenges in turning its fortunes around in recent years.

Moreover, the deal poses a potential threat to Taiwan Semiconductor Manufacturing Company (TSMC), which currently manufactures NVIDIA’s flagship processors.

### What the Deal Excludes

It is important to note that the agreement excludes Intel’s contract manufacturing business—known as its “foundry”—which produces chips for other companies. Industry analysts believe Intel’s foundry division requires major customers like NVIDIA, Apple, Qualcomm, or Broadcom to remain viable.

Still, this investment adds to Intel’s growing capital reserves, coming on the heels of a $2 billion investment from SoftBank and $5.7 billion from the U.S. government.

### Collaboration to Enhance AI Technology

As part of the partnership, Intel will design custom data center central processors that NVIDIA will package together with its AI chips or GPUs. Using proprietary NVIDIA technology, this integration will enable faster communication between Intel and NVIDIA chips, potentially giving Intel a competitive edge in the AI market. Efficient chip-to-chip connectivity is critical for processing large volumes of data, and this collaboration could accelerate AI computing capabilities.

### Market Impact: A Challenge to AMD and Broadcom

Currently, NVIDIA’s advanced AI servers with high-speed interconnects are only available with NVIDIA’s own chips. This deal opens the door for Intel to enter this space, allowing both companies to monetize NVIDIA’s AI server infrastructure more effectively.

Together, the NVIDIA-Intel chip solutions could pose a significant threat to competitors like AMD and Broadcom, who are also developing AI servers and chip-to-chip connectivity technologies.

### Strategic Advantages in Consumer Markets

For consumer applications, NVIDIA will provide Intel with a custom graphics chip to be paired with Intel’s PC central processors. This combination could help Intel regain ground against rivals such as AMD in the personal computing space.

Despite pressure from Arm Ltd technology in data centers and PCs, Intel continues to hold a dominant market share in the x86 computing architecture. This partnership with NVIDIA could strengthen Intel’s position in both consumer and enterprise markets moving forward.

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This landmark deal between NVIDIA and Intel ushers in a new era of semiconductor collaboration, promising innovative chip solutions that could reshape the competitive landscape in AI and computing technologies.
https://www.newsbytesapp.com/news/business/nvidia-invests-5b-in-intel-forms-ai-chip-partnership/story

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