Nvidia's $500 Billion Korean Alliance Arrives as Memory Constraints Loom Over August 26
Published on 08/08/2026 at 06:31 | Redaktion boerse-global.de
The AI chipmaker's latest strategic push stretches far beyond conventional data centers. Nvidia and South Korea's SK Group unveiled a partnership Monday valued at more than $500 billion, spanning everything from AI factory construction to next-generation memory chip supply. The memorandums of understanding cover a 2-gigawatt facility to be built by SK Telecom on Nvidia's forthcoming Vera Rubin DSX platform, with the first of these AI factories slated to come online in 2027.
The deal also cements a long-term development pact between Nvidia and SK Hynix focused on next-generation AI memory, including High-Bandwidth Memory chips. That component category has emerged as one of the tightest bottlenecks in the current AI buildout, making early capacity commitments strategically critical for the chip designer.
A Wider Constellation of Deals
The Korean agreement extends a pattern of ecosystem-deepening moves that have defined Nvidia's recent months. Late July brought a long-term partnership with Safe Superintelligence, the AI startup founded by Ilya Sutskever, alongside an equity investment Bloomberg pegged at $5 billion. Nvidia is providing SSI access to the upcoming Vera Rubin platform, a step expected to multiply the startup's compute capacity. The collaboration was reaffirmed in a further statement in early August.
SpaceX has also entered the picture. Elon Musk announced Tuesday that the company's new Starmind AI1 orbital constellation will run exclusively on Nvidia hardware, with Forbes reporting that the aerospace firm has secured a substantial allocation of the next graphics chip generation for 2027. The arrangement gives Nvidia a heavyweight customer beyond traditional data center operations, underscoring how demand for high-performance GPUs is migrating into orbital applications.
Should investors sell immediately? Or is it worth buying Nvidia?
For investors, the through-line is increasingly clear: Nvidia is locking in demand for its next chip generation through equity stakes and supply agreements rather than relying solely on open-market sales. The approach reduces exposure to any single major customer while binding partners more tightly to the company's platform.
Supply Constraints Cast a Shadow
Not all signals point in one direction. Media reports indicate Nvidia is currently testing variants of its upcoming Rubin Ultra graphics chips with reduced memory capacity, a direct response to tight High-Bandwidth Memory supply. Such a move would lay bare the limits of the supply chain even as demand for the chips continues to climb.
The company has also been active on other fronts. Alongside 120 other technology organizations, Nvidia introduced the Shared AI Findings Exchange initiative, an effort to standardize information sharing around security risks in agent-based AI. At the QuakeCon gaming event, which runs through Sunday, the company launched a Verified Priority Access program allowing attendees to purchase GeForce RTX 5090, 5080 and 5070 models directly at suggested retail prices.
Insider Activity and the Earnings Countdown
Shareholder structure data presents a mixed picture. Regulatory filings show insider sales of approximately $1.82 billion through July 2026, with not a single insider purchase registered during that window. A separate filing earlier this week revealed that investment firm Blue Grotto Capital trimmed its position by 199,358 shares. In the past 90 days alone, Nvidia insiders have executed 13 transactions — all sales — totaling roughly $767.2 million, with board member Mark A. Stevens among the most prominent sellers. Such moves are hardly unusual after a sustained run-up, though the absence of any counterbalancing insider buying gives observers pause.
The market's attention now converges on August 26, when Nvidia reports results for its second fiscal quarter ending in July. Consensus estimates call for revenue around $91.8 billion with earnings per share of $2.08. Analyst projections span a range of $91.0 billion to $93.6 billion in revenue and $2.01 to $2.13 in EPS. For context, the first fiscal quarter delivered record revenue of $81.6 billion in May — an 85 percent year-over-year increase — powered by $75.2 billion in data center sales. Management also authorized an additional $80 billion share buyback program and raised the quarterly dividend from $0.01 to $0.25 per share at that time.
Nvidia at a turning point? This analysis reveals what investors need to know now.
Wall Street's view remains predominantly constructive. The average price target sits at $304.26, with a buy-leaning consensus. Monday brought a cluster of fresh assessments: Cantor Fitzgerald reaffirmed a $240 target with an Overweight rating, BofA Securities set its mark at $235 with a Buy, and KeyBanc, Evercore ISI, Wells Fargo, J.P. Morgan and Citi Research landed between $210 and $230, all with buy recommendations.
The stock closed Friday at €193.68, up 2.03 percent on the day, leaving it roughly 4 percent below its 52-week high of €202.50 reached in May. Tuesday's trading saw shares at €191.96, a 1.13 percent gain, with the gap to that May peak widening to 5.20 percent. Between the billion-dollar partnerships and the looming earnings report, the shares look set for a volatile stretch — one that should reveal how resilient Nvidia's supply chains truly are against the backdrop of record demand.
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Nvidia Stock: New Analysis - 8 August
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