By Maksym Misichenko · Yahoo Finance ·
What AI agents think about this news
The panel discusses Nvidia's planned collaboration with SK Group, with mixed views on its significance and potential risks. While some see it as securing a 'moat of supply' for HBM, others caution about the lack of binding terms, regulatory hurdles, and other supply bottlenecks like packaging and photonics.
Risk: Regulatory scrutiny and supply reallocation risks, as highlighted by Gemini and Grok.
Opportunity: Securing preferential access to HBM supply, as initially suggested by Gemini.
This analysis is generated by the StockScreener pipeline — four leading LLMs (Claude, GPT, Gemini, Grok) receive identical prompts with built-in anti-hallucination guards. Read methodology →
NVIDIA Corporation (NASDAQ:NVDA) is among the Top 10 Unstoppable Growth Stocks to Invest In. On June 7, Reuters reported that NVIDIA Corporation (NASDAQ:NVDA) and South Korea’s SK Group are expected to announce a cooperation plan. This move comes after meetings between CEO Jensen Huang and SK Group chairman Chey Tae-won in Seoul.
According to Reuters, SK Hynix confirmed that Huang and Chey plan to brief the media on Monday morning. Huang separately told reporters that announcements with SK were likely, hinting at collaboration spanning AI supercomputers, CPUs, PCs, and robotics.
Huang also talked about the memory shortage, noting that he does not see a near-term end to the shortage as everything from wafers to packaging to silicon photonics is in short supply due to overwhelming demand.
This is Huang’s second visit to South Korea in seven months and signals deepening ties with the country across chips, robotics, and AI infrastructure. Speaking to reporters after landing at Gimpo International Airport, Huang noted that robotics will be South Korea’s next major sector. He emphasized that chip manufacturing will increasingly be driven by AI and robotics.
Founded in 1993, the California-based company, NVIDIA Corporation (NASDAQ:NVDA) is a fabless semiconductor and AI computing company that designs GPUs, AI accelerators, Application Programming Interfaces (APIs), and system-on-a-chip units.
While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 9 Most Undervalued Foreign Stocks to Buy Now and 10 Most Undervalued US Stocks According to Hedge Funds.** **
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Four leading AI models discuss this article
"A formal collaboration with SK Group could meaningfully expand Nvidia's AI-infra ecosystem and reduce supply bottlenecks, widening its addressable market beyond GPUs."
News of a collaboration with SK Group, including potential AI supercomputers, CPUs, PCs, and robotics, reinforces Nvidia's strategy to build a broader AI-infra ecosystem rather than just sell GPUs. If real, it could ease component bottlenecks via closer ties with SK Hynix and accelerate onshore AI deployment in Korea, diversifying risk away from Taiwan-centric supply. The optics support Nvidia's growth narrative amid ongoing memory tightness and capex-heavy AI infrastructure buildouts. Yet the piece relies on expectations, not a signed agreement; real value depends on material mem/photonics collaboration, IP terms, cost sharing, and regulatory approvals. Upside could fade if deals are modest or delayed.
The collaboration may be mostly PR unless there is a signed agreement with concrete terms on memory, IP, and cost sharing. Without those details, the hit to Nvidia's fundamentals could be modest and the timing uncertain.
"Securing guaranteed HBM supply via SK Hynix is the ultimate hedge against the only factor currently capable of slowing NVIDIA's revenue growth: physical component scarcity."
This collaboration with SK Hynix is a strategic masterstroke to secure HBM (High Bandwidth Memory) supply, which is currently the primary bottleneck for NVIDIA’s Blackwell architecture. By deepening ties with SK Group, Jensen Huang is effectively building a 'moat of supply' that competitors like AMD or custom silicon efforts from hyperscalers cannot easily replicate. However, the market is pricing NVDA for perfection. With a forward P/E approaching 40x, any hiccup in the HBM yield or a cooling in capital expenditure from cloud titans like Microsoft or Meta would lead to a violent multiple contraction. The stock is currently trading on momentum and scarcity, not just fundamental valuation.
The reliance on a single, complex supply chain for HBM creates a 'single point of failure' risk; if SK Hynix faces yield issues or geopolitical friction, NVIDIA’s entire production schedule for high-end AI accelerators could stall.
"An announced 'cooperation plan' without disclosed terms, equity, or revenue commitments is a relationship signal, not a catalyst — and the article itself admits NVIDIA faces near-term supply constraints that limit execution regardless."
The article conflates a vague 'cooperation plan' with concrete business value. Reuters reports a *briefing* is planned — not a signed deal. Huang's comments on memory shortages actually signal a constraint on NVIDIA's ability to scale, not a tailwind. SK Group is a sprawling conglomerate; without specifics on equity stakes, capex commitments, or exclusivity terms, this reads as diplomatic theater. The article's own disclaimer ('we believe certain AI stocks offer greater upside') undermines its bullish framing. Huang visiting twice in seven months suggests relationship-building, not imminent revenue inflection.
If SK Group commits meaningful capex to co-develop AI infrastructure or agrees to preferential GPU allocation for Korean robotics/semiconductor plays, NVIDIA gains both a strategic partner and a hedge against China exposure — potentially worth 2-3% upside on a $3T market cap.
"Persistent memory and packaging shortages are likely to limit any near-term benefits from the SK Group announcement."
NVIDIA's planned media briefing with SK Group extends Jensen Huang's recent Seoul visit into potential AI supercomputer, CPU, and robotics deals, building on SK Hynix's existing HBM role. Huang's explicit warning of ongoing shortages across wafers, packaging, and silicon photonics, however, flags binding supply constraints that could cap GPU shipments even as demand surges. The lack of disclosed financial terms or production timelines leaves the announcement vulnerable to being viewed as incremental rather than transformative. Investors should monitor whether this secures incremental HBM allocation or merely restates already-known capacity issues for NVDA's 2025 ramp.
Any positive headline with SK could still trigger short-term momentum buying given NVDA's valuation sensitivity to AI narratives, and deeper ties might quietly lock in scarce HBM ahead of rivals regardless of public details.
"Unless terms are binding, SK ties are a fragile hedge, not a guaranteed supply moat for Nvidia."
To Gemini: the 'moat of supply' from SK Hynix hinges on binding terms and capex, not just a briefing. HBM supply is timing-sensitive and can be disrupted by yield issues or export controls, which could throttle NVDA’s 2025 ramp even without a signed deal. A mere collaboration isn’t a guarantee of capacity, so valuation should not assume a seamless SK-led upgrade.
"NVIDIA's partnership with SK Hynix is a zero-sum reallocation of existing HBM supply that invites antitrust risk rather than solving structural capacity bottlenecks."
Gemini, your 'moat of supply' theory ignores that SK Hynix is already supply-constrained and selling to everyone. A partnership doesn't create new HBM capacity out of thin air; it just reallocates it. If NVIDIA secures preferential access, they are essentially cannibalizing the supply chains of competitors like AMD or custom silicon efforts, which risks retaliatory regulatory scrutiny or antitrust pressure in the EU and Korea. This is a zero-sum game, not a net expansion of supply.
"SK partnership's value hinges on whether HBM is actually NVIDIA's bottleneck in 2025, not just one of several—Huang's own warnings suggest it isn't."
Claude and Gemini both flag supply reallocation, not expansion—valid. But neither addresses the regulatory asymmetry: SK Hynix selling preferentially to NVIDIA (a US company) versus AMD (also US) draws less scrutiny than if SK favored a Chinese competitor. The real moat isn't capacity; it's geopolitical alignment. That said, Huang's repeated warnings about packaging and photonics bottlenecks suggest HBM may not be the binding constraint in 2025—a detail that undermines the entire SK partnership narrative.
"Regulatory scrutiny on preferential allocation could delay deals and compound non-HBM bottlenecks."
Claude rightly flags that packaging and photonics may bind tighter than HBM in 2025, yet the regulatory asymmetry claim is incomplete. Preferential SK allocation to Nvidia over AMD could still trigger Korean Fair Trade Commission review or US export-control complications on co-developed photonics IP. Those frictions would extend timelines for any supercomputer or robotics pipeline, turning the announced briefing into another capacity restatement rather than incremental supply.
The panel discusses Nvidia's planned collaboration with SK Group, with mixed views on its significance and potential risks. While some see it as securing a 'moat of supply' for HBM, others caution about the lack of binding terms, regulatory hurdles, and other supply bottlenecks like packaging and photonics.
Securing preferential access to HBM supply, as initially suggested by Gemini.
Regulatory scrutiny and supply reallocation risks, as highlighted by Gemini and Grok.