Amid allegations of infidelity and involvement in a Chinese espionage scandal against NVIDIA CEO Jensen Huang, forecasts suggest that Samsung Electronics could gain from the turmoil. If NVIDIA's challenges create opportunities for competitors like AMD, Samsung, which collaborates closely with these firms in the memory semiconductor sector, may also benefit.
According to Bloomberg on November 11, Gary Tan, a portfolio manager at U.S. asset management firm Allspring Global Investments, stated, "Samsung Electronics' stock has shown relatively strong performance so far," adding that investors increasingly view Samsung as a beneficiary of the so-called 'NVIDIA Plus One' investment strategy. He further explained, "Samsung has established closer ties with major GPU competitors of NVIDIA in the memory semiconductor sector."
The 'NVIDIA Plus One' strategy refers to an investment approach aimed at reducing dependence on NVIDIA, which holds a dominant position in the AI semiconductor market, by investing in other players within the AI ecosystem.
As of 11:41 a.m. on November 12, Samsung's stock was trading at 213,000 won, up 3.40% from the previous trading day. In contrast, NVIDIA's stock fell 8.61% to $158.78 in after-hours trading on November 11, following reports of further infidelity allegations against CEO Huang and news that the board might decide on his dismissal as early as November 12.
Samsung supplies semiconductors, including high-bandwidth memory (HBM), to NVIDIA, but it is also significantly strengthening its collaboration with AMD, a key competitor in the GPU market. Additionally, Samsung is moving to expand partnerships with companies like Google, which develops tensor processing units (TPUs) that compete with NVIDIA's GPUs.
Tan noted, "If NVIDIA faces delays in new product launches due to executive changes, competitors may seize the opportunity to secure advanced process foundry and memory semiconductor production capabilities. Component suppliers could also accelerate customer diversification and reduce reliance on specific clients as a result of this situation."
* This article has been translated by AI.
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