By Adam Clark

Samsung Electronics is set to supply Nvidia with next-generation memory chips, according to a report. That's a bit of a concern for Micron Technology but it shouldn't put too much of a dent in optimism around the U.S. memory hardware company.

Samsung is ready to begin producing new high-bandwidth memory chips -- named HBM4 -- next month and start shipping them to Nvidia, Reuters reported, citing a person familiar with the matter.

Nvidia declined to comment on the report. Samsung didn't immediately respond to a request for comment from Barron's early on Monday.

Micron is the chief rival of South Korea's Samsung and SK Hynix in making HBM chips, which are crucial for the latest artificial-intelligence processors. Surging demand for HBM chips, which carry higher margins than typical memory components, has been a big driver for Micron's share price more than quadrupling in the last 12 months.

However, Samsung's progress in meeting requirements for Nvidia doesn't necessarily mean a loss of sales for Micron, with AI processor makers buying as many HBM chips as they can get their hands on.

"While exact share for HBM4 will be decided in 2026, tight supply across all three vendors [Samsung, Micron and SK Hynix] is likely to limit significant share shift," William Blair analyst Sebastien Naji wrote in a recent research note initiating coverage on Micron with an Outperform rating.

Naji noted that Micron's supply for 2026 is already sold out and it should be able to maintain a HBM market share in the low-20% range in 2026 and 2027. He argued that Micron is set to nearly quadruple its HBM revenue over the next two years, capturing a roughly $20 billion revenue opportunity in 2027.

Write to Adam Clark at adam.clark@barrons.com

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January 26, 2026 03:13 ET (08:13 GMT)

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