the market on close. I'm Marley Caden here in Chicago alongside Sam Botis at the New York Stock Exchange. We'll close out this Monday's show with our thoughts on the session as we usually do.Gold continuing its impressive rally today, crossing $5,100 an ounce for the first time ever. Silver also holding on to its colossal runup, jumping as high as $108. Prices of both of these precious metals rallying on sustained demand from both institutional and retail buyers with Goldman Sachs saying that it sees the de ...

Core Viewpoint - Samsung Electronics is set to begin production of its next-generation high-bandwidth memory (HBM) chips, known as HBM4, next month, with plans to supply these chips to Nvidia [1] Group 1: Company Developments - Samsung Electronics will initiate the production of HBM4 chips, which are designed to enhance data processing capabilities [1] - The collaboration with Nvidia indicates a strategic partnership aimed at advancing technology in high-performance computing [1] Group 2: Industry Implications - The introduction of HBM4 chips is expected to impact the semiconductor industry by pushing the boundaries of memory performance [1] - This move aligns with the growing demand for advanced memory solutions in sectors such as artificial intelligence and gaming [1]

Group 1: Market Overview - Asian equity markets experienced a strong start to 2026, driven by semiconductor and AI stocks, while bitcoin faced challenges in gaining momentum [1] - The KOSPI index in South Korea surged 1.6% to 4,281, reaching an all-time high shortly after the market opened [7] Group 2: Biren Technology's IPO - Shanghai Biren Technology, the first Chinese GPU startup to list in Hong Kong, saw its shares more than double on debut, opening at HK$35.70 and peaking at HK$42.88, a 119% increase from the IPO price of HK$19.60 [1][2] - The IPO attracted extraordinary demand, with retail investors oversubscribing by 2,347 times and institutional orders at 26 times the available shares, raising HK$5.58 billion (approximately $717 million) and valuing the company at around $11 billion [2] Group 3: AI Chip Market Dynamics - Chinese AI startups are entering public markets more rapidly than their US counterparts, benefiting from supportive domestic policies and clearer revenue paths, indicating a divergence in AI development strategies between China and the US [3] - Biren Technology, founded in 2019, focuses on general-purpose GPUs and intelligent computing systems, gaining attention with its BR100 chip as a domestic alternative to Nvidia's processors [4] Group 4: Baidu's Kunlunxin IPO - Baidu's semiconductor unit Kunlunxin has filed for a listing on the Hong Kong Stock Exchange, reflecting China's ongoing efforts to develop homegrown alternatives amid US export restrictions [5] Group 5: Future IPOs and Market Sentiment - The Hong Kong IPO pipeline is active with AI and chipmakers, including Zhipu AI and Iluvatar CoreX set to debut on January 8, and seven companies filed listing applications on New Year's Day [6] Group 6: South Korean Chipmakers - Samsung Electronics' stock rose 3.5% to a 52-week high of 124,100 won, driven by positive customer reception for HBM4 chips, while SK Hynix reached a record intraday price of 668,000 won [7] - Analysts have raised price targets significantly, with Daol Investment & Securities setting targets of 160,000 won for Samsung and 950,000 won for SK Hynix, while Daishin Securities projected SK Hynix could achieve 100 trillion won in operating profit this year [8]

Core Insights - Samsung Electronics has made significant progress in the development of its next-generation high-bandwidth memory (HBM) chips, specifically HBM4, which has received positive feedback from customers regarding its competitiveness [1] Company Summary - The advancements in HBM4 technology indicate Samsung's commitment to enhancing its product offerings in the semiconductor market [1] - Customer praise suggests that Samsung's HBM4 chips may provide a competitive edge in terms of performance and efficiency [1]

Core Insights - Samsung Electronics is in "close discussion" to supply its next-generation high-bandwidth memory (HBM) chips, specifically HBM4, to Nvidia as it aims to catch up in the competitive semiconductor market [1] Company Summary - Samsung Electronics is actively engaging with Nvidia to provide HBM4 chips, indicating a strategic move to enhance its position in the high-performance computing sector [1] Industry Summary - The discussions between Samsung and Nvidia highlight the ongoing competition in the semiconductor industry, particularly in the development of advanced memory technologies [1]

Group 1 - Samsung Electronics Co.'s semiconductor division reported an operating profit of 7 trillion won ($4.9 billion) for the September quarter, exceeding analysts' expectations of 4.7 trillion won, indicating a recovery driven by global AI demand [1] - The company achieved a net income of 12.01 trillion won, surpassing analysts' estimate of 9.29 trillion won, reflecting strong preliminary operating profit and revenue [2] - Samsung's memory chip business is crucial to its overall operations, but it has lost leadership in a market where customers prioritize premium memory capacity for AI capabilities [3] Group 2 - The demand for conventional memory products is increasing, benefiting Samsung, which has seen its stock price rise approximately 90% since the beginning of the year, although SK Hynix's shares have more than tripled in the same timeframe [4] - Investors are optimistic about Samsung's ability to leverage its scale to improve its position in high-bandwidth memory, as it regained its status as the top memory maker by revenue in Q3 due to AI-related investments boosting prices and sales volumes of DRAM and NAND [5] - Samsung has secured an order from Advanced Micro Devices Inc. and is awaiting final approval for HBM3E and next-generation HBM4 chips from Nvidia, while also supplying chips for OpenAI's Stargate project [6]

Key TakeawaysSamsung Electronics (SSNLF) significantly exceeded Q3 2025 earnings estimates, driven by robust demand in its semiconductor division, particularly for AI-related chips.The company's net income reached ₩12.01 trillion, far surpassing the estimated ₩9.29 trillion, while operating profit hit ₩12.17 trillion, aligning with preliminary figures.Samsung anticipates continued strong demand for new smartphones and expanding AI market opportunities in Q4 2025 and into 2026, fueled by its HBM3E chip sales ...

Core Insights - Micron Technology, Inc. is significantly advancing in the AI memory sector with its new customizable high-bandwidth memory (HBM) chips, HBM4E, following a record fiscal 2025 [1][4] Group 1: Product Development and Strategy - The HBM4E line enhances Micron's existing HBM4 platform, providing improved bandwidth, power efficiency, and flexibility [2] - A partnership with Taiwan Semiconductor Manufacturing Company (TSMC) allows Micron to produce customized base logic dies, optimizing HBM4E for specific applications like advanced graphics processing units and AI accelerators [2][3] - This strategy aims to capture higher-margin opportunities and strengthen customer loyalty in a rapidly expanding market [3] Group 2: Financial Performance and Projections - Micron's HBM business generated nearly $8 billion in annualized revenues in fiscal 2025, with expectations for strong demand to persist into fiscal 2026 [4] - The Zacks Consensus Estimate for fiscal 2026 revenues is $53.27 billion, reflecting a year-over-year growth of 42.5% [5] - Earnings estimates for fiscal 2026 and 2027 indicate a year-over-year increase of 100% and 12%, respectively, with upward revisions in the past 30 days [15] Group 3: Competitive Landscape - While there are no direct U.S. competitors in the memory chip space, Intel Corporation and Broadcom Inc. are significant players in the HBM supply chain and AI hardware ecosystem [6] - Intel's Gaudi AI accelerators require a robust HBM supply, with Micron being a major supplier [7] - Broadcom's demand for AI chips may influence Micron's future HBM supply allocation [8] Group 4: Stock Performance and Valuation - Micron's shares have increased approximately 128.1% year to date, outperforming the Zacks Computer – Integrated Systems industry's gain of 64.1% [9] - The company trades at a forward price-to-earnings ratio of 11.4, significantly lower than the industry average of 22.81 [12]

Core Insights - Micron is experiencing significant growth due to the rising demand for AI infrastructure, with its stock gaining 40.6% in September [1] - The company sold $2 billion worth of high-bandwidth memory (HBM) chips in Q4 fiscal 2025 and is preparing to launch next-generation HBM4 chips [3] - Micron's revenue increased by 46% year over year in Q4 to $11.3 billion, with a non-GAAP gross margin of 45.7% [5] Demand for AI Infrastructure - The demand for high-bandwidth memory is surging, driven by major deals with tech giants like OpenAI and Nvidia for AI data centers [2] - Micron is prioritizing HBM production over standard DRAM chips, despite weak demand in the PC and smartphone markets [4] Financial Performance - Micron's revenue for Q4 fiscal 2025 reached $11.3 billion, with adjusted earnings per share more than doubling [5] - The company anticipates generating around $12.5 billion in revenue in Q1 fiscal 2026, with a projected non-GAAP gross margin of approximately 51.5% [5] Market Dynamics - The memory chip market is cyclical, with pricing influenced by supply and demand dynamics [7] - Historical trends indicate that periods of high demand are often followed by downturns, posing risks to Micron's profitability [7][8]

Core Viewpoint - SK Hynix has completed its internal certification for next-generation high-bandwidth memory 4 (HBM4) chips and established a production system to maintain its competitive edge in the market [1] Group 1: Company Developments - SK Hynix has shipped HBM4 12-layer chip samples to customers and aims to complete mass production preparations within the second half of this year [2] - The company is currently the main HBM supplier to Nvidia, with a projected market share of 66% this year, expected to remain in the low 60% range by 2026 [4] - An SK Hynix executive noted that the new HBM4 products include a customer-specific logic die, making it difficult to replace with rival products [7] Group 2: Market Position and Competitors - Shares of SK Hynix rose 7% to a record high, significantly outperforming the KOSPI index, driven by positive analyst sentiment regarding HBM4 production plans [5] - Samsung Electronics is attempting to catch up in the HBM market by adopting a more advanced 1c-nanometer node, while SK Hynix uses a 1b-nanometer process for HBM4 [5][6] - Year-to-date, SK Hynix shares have increased by 88.9%, outperforming the KOSPI's 41.5% gain, while Micron shares have risen by 78.9% [8]