Following Reuters' article on Friday, which stated that Samsung Electronics' most recent high bandwidth memory (HBM) chips had failed Nvidia's testing to be used in AI processors, the company's shares plummeted. 

A month ago, Samsung Electronics Co Ltd (KS:005930) had a 2.3% decline to 76,500 won. The benchmark KOSPI index for South Korea declined by about 1% as a result of the stock's losses. 

According to Reuters, issues with power consumption and heating prevented Samsung's HBM and HBM3E chips—the company's most sophisticated processors meant for AI processing units—from satisfying NVIDIA Corporation's (NASDAQ:NVDA) requirements.

At 12.48 pm, shares of the company were trading at Rs 322.85 apiece on the NSE.

The fintech firm reported net profit of Rs 19.16 crore in the January-March quarter, as compared to Rs 7.56 crore in the year-ago period.

Following Reuters' article on Friday, which stated that Samsung Electronics' most recent high bandwidth memory (HBM) chips had failed Nvidia's testing to be used in AI processors, the company's shares plummeted.

A month ago, Samsung Electronics Co Ltd (KS:005930) had a 2.3% decline to 76,500 won. The benchmark KOSPI index for South Korea declined by about 1% as a result of the stock's losses. 

According to Reuters, issues with power consumption and heating prevented Samsung's HBM and HBM3E chips—the company's most sophisticated processors meant for AI processing units—from satisfying NVIDIA Corporation's (NASDAQ:NVDA) requirements. 

Volume-wise, Samsung is the largest memory chip manufacturer in the world. SK Hynix and Micron are competitors in the advanced HBM market, and while the company has benefited in recent quarters from rising AI-driven demand, this trend may reverse if it loses market share to them.