Nvidia strikes a new memory-chip deal as SK Hynix and Samsung shares close with big losses
Nvidia has struck a new memory-chip deal even as SK Hynix and Samsung shares fell sharply, signaling potential supply-chain shifts in HBM sourcing. The divergence between NVDA's continued deal-making and Korean memory names' selloff raises the question of whether AI-infrastructure demand is concentrated further into fewer, Nvidia-controlled partnerships.
What happened
Nvidia has struck a new memory-chip deal even as SK Hynix and Samsung shares fell sharply, signaling potential supply-chain shifts in HBM sourcing.
The read · Jun 8
NVDA's new memory deal signals ongoing HBM demand, but the sharp selloff in SK Hynix and Samsung raises the question of whether AI momentum is narrowing — and whether Korean memory names have decoupled from the AI trade or are discounting a slowdown NVDA hasn't yet priced in.
Wrong if
If the new memory deal is interpreted as NVDA securing supply at favorable terms, both legs could move against the pair — NVDA flat and Korean names recovering on volume-reassurance. Any broad Kospi or EM risk-off unwind would also distort the pair.
CoverageSource: MarketWatch · Published here MON, JUN 8 · 3:37 AM ET · the only report in this recordHow this is decided →
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The story1 min read
Nvidia has announced a new memory-chip deal at a time when SK Hynix and Samsung, two major suppliers of high-bandwidth memory (HBM) chips critical for AI infrastructure, experienced significant share price declines. The divergence between Nvidia's successful partnership expansion and the weakness in Korean chipmaker valuations suggests a potential consolidation in HBM supply chains, with Nvidia exercising greater control over its sourcing relationships. This development raises questions about whether demand from the AI boom is becoming increasingly concentrated among a smaller set of suppliers aligned with Nvidia's strategic interests.
The market reaction underscores broader concerns about competition and dependency in the semiconductor supply chain as AI infrastructure buildout accelerates. Investors will be watching whether additional Nvidia partnerships emerge in coming quarters, how SK Hynix and Samsung respond with their own strategic initiatives, and whether the price pressure on these memory suppliers persists or stabilizes as AI demand continues to evolve.
The read, in fullWhy it matters
NVDA's 71.1% gross margin and 65.5% YoY revenue growth reflect a company still extracting premium value from the AI infrastructure build-out, and a new memory deal suggests it is actively managing its HBM supply chain. Meanwhile SK Hynix and Samsung are pricing in risk — either of demand softness, competitive displacement, or margin pressure from concentrated customer negotiating power. The pair (long NVDA / short Korean memory proxies via ADRs or ETF) isolates the question of whether NVDA's deal-making is accretive to it at the expense of suppliers.
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▲ The case it holds
NVDA's 55.6% net margin and continued supplier deal-making into a Kospi selloff suggests it is wielding pricing power that insulates earnings even as memory names absorb the cost — with $215.9B in revenue momentum behind it, the market may be mispricing NVDA's relative strength.
▼ The case it breaks
The Korean memory selloff could be a leading indicator of deteriorating end-demand for AI accelerators broadly, and if HBM orders slow, NVDA's revenue trajectory — already baking in aggressive forward expectations — faces a consensus-reset risk that its current valuation does not reflect.
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