AMD has surpassed a market capitalization of $1 trillion for the first time, driven by growing demand for artificial intelligence (AI) semiconductors. As AMD positions itself as a leading competitor in the AI accelerator market dominated by Nvidia, the value of the supply chain established by Samsung Electronics, which includes both Nvidia and AMD, is also increasing. Samsung is supplying next-generation high-bandwidth memory (HBM) to both companies, broadening its engagement in the AI semiconductor sector.
According to reports from foreign media and the semiconductor industry on September 22, AMD's stock price rose 9.6% to $613.31 on September 21, marking its first-ever market cap surpassing $1 trillion. The stock has surged 185% this year. Earlier, on March 18, Samsung announced an expansion of its strategic collaboration with AMD in the fields of next-generation AI memory and computing technology.
The growth of AMD's valuation is attributed to the expansion of its AI business. AMD is broadening its operations beyond Instinct GPUs to include Epic CPUs for servers and rack-level AI platforms. By securing major clients such as Meta and OpenAI, AMD is transitioning from a supplier of individual chips to a provider of complete AI systems.
The partnership with Samsung is also strengthening. Samsung has been supplying HBM3E to AMD's MI350X and MI355X models and has been selected as the preferred supplier for HBM4 for the next-generation MI455X. The two companies are also collaborating on high-performance DDR5 for the sixth-generation Epic CPUs and the Helios platform.
The scope of collaboration extends beyond memory. The two companies are discussing foundry production cooperation for AMD's next-generation products. This arrangement allows Samsung to integrate its comprehensive semiconductor capabilities, including memory, foundry, and advanced packaging, into AMD's AI roadmap.
For Samsung, AMD's growth is significant as it could lead to a diversification of AI customers. As demand for HBM for AI becomes increasingly concentrated with Nvidia, memory manufacturers' performance is also affected by the product cycles of specific clients. If AMD increases its supply of AI accelerators, Samsung will secure pathways to expand HBM shipments beyond Nvidia.
Connections with Nvidia are also being strengthened. Jensen Huang, CEO of Nvidia, confirmed in June that Samsung, along with SK Hynix and Micron, is supplying HBM4 for the next-generation Vera Rubin platform. Samsung is supplying HBM4 to Nvidia while also expanding collaboration possibilities with AMD for HBM4, DDR5, and foundry services.
AMD's market cap surpassing $1 trillion signals that the AI accelerator supply chain is gradually diversifying beyond Nvidia. As this trend continues, Samsung will have more business opportunities in memory and foundry. However, the foundry collaboration with AMD is still in the discussion phase, and whether it leads to actual orders will be a key factor in determining the extent of additional benefits.
One industry insider stated, "As AMD's shipments of AI accelerators increase, the demand for HBM will broaden beyond Nvidia, allowing for a reduction in dependency on specific clients while simultaneously expanding collaboration in memory and foundry services."
* This article has been translated by AI.
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