$500 Billion: The Deal That Will Secure Nvidia's Dominance in the AI Market

Nvidia has signed a massive partnership with South Korean memory manufacturer SK Hynix to supply HBM memory components valued at an estimated $500 billion. The deal aims to secure the supply of the critical component for artificial intelligence, which suffers from severe shortages due to production constraints. SK Hynix leads the market with a 50% share, and the partnership provides it with a stable anchor contract.

Nvidia has signed a massive partnership with South Korean memory manufacturer SK Hynix, under which the company will supply advanced HBM memory valued at an estimated $500 billion in the coming years. The deal is intended to secure the supply of the critical memory component for artificial intelligence, which suffers from severe shortages due to complex production constraints. Only three companies in the world produce the component: Samsung, Micron, and SK Hynix. SK Hynix leads the market with a 50% share, compared to 33% for Samsung and 18% for Micron. The partnership gives Nvidia a significant competitive advantage in the AI infrastructure market, and SK Hynix long-term business visibility. The article notes attractive future profit multiples for investors: SK Hynix stock trades at a multiple of 5.5 on 2027 data, and Nvidia stock at a multiple of less than 15 for fiscal year 2028. The article concludes with a clarification that it does not constitute investment advice.