Samsung shares rise after Nvidia tie-up on new AI chips in latest partnership

As Nvidia, the world's leading chip-making giant announced a partnership with Samsung recently to boost AI industry, shares of Samsung Electronics , rose as much as 5% on Tuesday.

The news came after Nvidia CEO Jensen Huang said its new artificial intelligence chips were being manufactured by the South Korean company.

At Nvidia's GTC developer conference in California on Monday, Huang unveiled Nvidia's new AI inference processor based on technology from chip startup Groq.

"I want to thank Samsung who manufactures the Groq LP30 chip for us and they're cranking as hard as they ‌can," he said, adding the chips were in production and would be shipped in the second half of this year.

Samsung also showcased the Nvidia chips made using its 4-nanometer manufacturing process at the GTC.

Samsung shares were up 3.9% at 196,000 won as of 0127 GMT, after earlier reaching 198,000 won, while the broader market was up 2.4%.

The latest news update just came right after Nvidia CEO Jensen Huang announced that Nvidia, the world's most valuable company, with a market capitalization of more than $4.3 trillion unveiled a next-generation AI chip called 'Feynman' aims to bring revolution to AI chip industry.