[Featured Stock] Simtek, Rising Expectations for Collaboration Ahead of Nvidia Earnings Announcement
Shares of high-performance semiconductor substrate manufacturer Simtek are showing strong performance. With NVIDIA's earnings announcement approaching, expectations that Simtek's results will improve due to the production of high-bandwidth memory (HBM) substrates used in NVIDIA GPUs appear to be reflected.
As of 10:13 AM on the 26th, Simtek's stock price rose 12.23% from the previous day to 20,650 KRW. Following the announcement of significantly reduced losses the day before, investor sentiment seems to have surged with further performance improvements expected this year.
Last year, Simtek recorded sales of 1.2335 trillion KRW and an operating loss of 47 billion KRW. Compared to the same period the previous year, sales increased by 18.3%, and the loss size decreased by 46.7%. Despite semiconductor market uncertainties and demand slowdown, the company grew sales and improved its profitability structure.
A turnaround to profitability is also expected this year. Kim Sowon, a researcher at Kiwoom Securities, stated, "Due to customer inventory adjustments, operating losses are expected until the first half of this year," adding, "As China's subsidy policies lead to a rebound in smartphone and IT set demand, customer memory inventories will be depleted, advancing the timing of Simtek's performance improvement."
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In particular, the anticipation of cooperation with Simtek during NVIDIA's development of its proprietary memory standard SOCAMM is seen as a positive factor. Simtek is known to produce HBM-related substrates used in NVIDIA GPU products. Through collaboration with NVIDIA, it is expected to gain a favorable position in the next-generation SOCAMM-related substrate market.
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