Major Memory Deal Between Nvidia and SK Hynix
Nvidia (NASDAQ: NVDA) and SK Hynix (NASDAQ: SKHY) have signed the largest memory deal in history, aimed at enhancing AI infrastructure. The deal, finalized just before the weekend, includes SK Telecom building a 2-gigawatt AI cloud data center in Korea on Nvidia’s Vera Rubin Platform, along with SK Hynix supplying Nvidia with high bandwidth memory (HBM) for future AI memory development. This partnership is crucial as HBM capacity is limited and vital for reducing latency in AI and GPU chips.
This collaboration positions Nvidia to maintain its leadership in AI, especially as demand for HBM increases due to growing focus on fast memory access. Currently, the market faces challenges in expanding HBM capacity owing to the reliance on EUV lithography machines from ASML and the extensive resources required for HBM production. With SK Hynix already being the largest supplier of HBM to Nvidia, this deal is set to significantly boost revenues for both companies in the coming years.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
