What is the reported price for Samsung's HBM4 AI memory chip?

Samsung is reportedly negotiating to price its HBM4 AI memory chip at around $700 per unit.

What is the expected profit margin for Samsung's HBM4 chips?

The reported $700 price tag for Samsung's HBM4 implies an operating profit margin of 50% to 60%.

How does Samsung's HBM4 pricing compare to its previous generation?

The reported price for Samsung's HBM4 is up to 30% higher than the previous generation of AI memory chips.

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Samsung HBM4 Chips Fetch Premium Prices, Boost Stock

19 Feb

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Summary

Samsung aims for $700 price per HBM4 chip, up 30% from prior generation.
This pricing suggests a 50-60% operating profit margin for Samsung's HBM4.
The AI memory market remains tight, indicating Samsung's pricing leverage.

Samsung HBM4 Chips Fetch Premium Prices, Boost Stock

Samsung Electronics' stock reached a new record high on Thursday as reports emerged about the company's negotiations for its HBM4 artificial intelligence memory chip. The proposed price is approximately $700 per unit, representing an increase of up to 30% compared to the previous generation.

This pricing strategy indicates a significant operating profit margin of 50% to 60% for Samsung's HBM4. The situation underscores the "pricing power" within the AI memory sector, which remains tight.

Concerns regarding business disruptions from AI have eased, with positive industry developments continuing. Samsung's progress in the competitive AI memory market is notable, especially after initially trailing smaller competitor SK Hynix.

Samsung announced the mass production and shipment of HBM4 chips last week. The elevated pricing for Samsung's HBM4 may lead SK Hynix to adjust its own pricing, which was previously in the mid-$500 range for Nvidia Corp.

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