Nvidia (NVDA) Stock; Rises Slightly After SK Group Talks HBM4 Supply

TLDRs;

Nvidia stock rises slightly as SK Group and Nvidia discuss HBM4 memory supply plans.

The SK-Nvidia AI Factory in South Korea aims to deploy over 50,000 GPUs by 2027.

SK hynix remains the main HBM4 supplier but could face partial production capacity limitations.

South Korea’s push for sovereign AI infrastructure may create roughly $750 million in HBM revenue.

Shares of Nvidia (NASDAQ: NVDA) rose modestly this week after industry sources confirmed that SK Group chairman Chey Tae-won met with Nvidia CEO Jensen Huang in California earlier this month to discuss HBM4 memory supply and future AI collaboration plans.

The conversation reportedly centered on HBM4, the next-generation memory chip slated for Nvidia’s upcoming AI accelerator, Vera Rubin.

SK hynix, one of the primary HBM suppliers, has confirmed that HBM4 production is progressing on schedule. However, the company cautioned that it might not fully meet Nvidia’s anticipated demand, potentially leaving room for competitors to secure contracts. Samsung is also expected to begin HBM4 production later in the year, though industry estimates suggest SK hynix will still retain roughly a 70% share of Nvidia’s HBM4 market in 2026.

SK-Nvidia Meeting Focuses on HBM4 Chips

The discussions extended beyond memory supply to broader strategic collaboration in AI. Chey Tae-won, who has been in the U.S. since early February for meetings with major tech executives, reportedly explored opportunities for cooperation that go beyond semiconductor production, hinting at deeper integration between SK Group’s AI ambitions and Nvidia’s technology platforms.

NVIDIA Corporation, NVDA

AI Factory Plans Drive Long-Term Collaboration

While HBM4 supply garnered attention, it is a component of a much larger SK-Nvidia partnership. The two companies have previously announced plans to build an “AI Factory” in South Korea, expected to host more than 50,000 Nvidia GPUs.

The first phase of the project is scheduled for completion by late 2027. The facility will not only support SK subsidiaries but also provide GPU-as-a-service to external organizations. SK Telecom, for instance, is planning an industrial AI cloud in Asia leveraging Nvidia RTX PRO 6000 Blackwell Server Edition GPUs.

SK hynix also plans to utilize Nvidia’s Omniverse platform to create digital twins of semiconductor fabs, enabling virtual simulations to improve manufacturing ramp-up and operational efficiency. Analysts say these efforts position SK to benefit from both technological leadership and efficiency gains in memory chip production.

Memory Supply Tightness Shapes Market Expectations

The global HBM market remains tight, reflecting a multi-year shortage in high-bandwidth memory. HBM4 chips require significantly more wafer resources than standard DRAM, increasing production complexity.

This supply pressure, combined with growing AI demand, has contributed to modest gains in Nvidia shares as investors weigh the strategic importance of securing memory supply against potential revenue growth.

South Korea Pushes Sovereign AI Ambitions

The SK-Nvidia partnership aligns with South Korea’s broader strategy to deploy over 260,000 Nvidia GPUs domestically, aiming to achieve sovereign AI capabilities. Analysts estimate that this domestic buildout could generate around $750 million in new HBM revenue for SK hynix and Samsung Electronics.

The initiative also reflects a national effort to reduce reliance on foreign AI infrastructure while accelerating AI adoption across industrial and commercial sectors.

Investors appear cautiously optimistic as Nvidia navigates supply constraints while expanding its footprint in South Korea’s growing AI ecosystem. The stock’s slight uptick suggests the market is pricing in the strategic benefits of these collaborations rather than immediate revenue impact.

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