Nvidia (NVDA) Valuation Check After Major South Korea AI Memory And Data Center Agreements - Yahoo Finance

NVIDIA recently signed major agreements in South Korea for next-generation memory supply and support for gigawatt-scale AI factories, reinforcing its data center-centric AI strategy. Despite positive ... Read original →

NVIDIA’s South Korea deals with SK hynix for HBM4 and local cloud players aren’t just about capacity—they’re a strategic hedge against geopolitical supply chain fractures. This accelerates TSMC’s CoWoS allocation toward U.S.-aligned hubs, deepening Taiwan, China’s foundry dependence on a single client. Regulatory risk looms as Seoul considers capping data center power consumption, which would inflate liquid cooling and infrastructure costs, eroding the economics of gigawatt-scale AI factories. With AMD’s MI300X gaining traction and Intel pushing Gaudi3 on price, NVIDIA must defend its premium via Blackwell Ultra. Over the next 18 months, memory bandwidth—not just compute—will dictate AI chip competitiveness, shifting pricing power toward DRAM makers and pressuring GPU gross margins. The apparent valuation discount already prices in the full HBM5 ramp window through 2027.