Samsung, SK Hynix Sign $950 Billion AI Chip Deals, Stocks Decline

Samsung Electronics and SK Hynix signed AI chip supply deals worth a combined 950 billion dollars with Nvidia and Broadcom. Despite this, both companies' stocks fell on Monday, indicating that much of the AI rally is already priced in. SK Hynix will supply 750 billion dollars in memory chips to Nvidia and other US firms over several years, with Nvidia's share of the deal at 500 billion dollars. This agreement targets new data centers expected by 2027, and SK Hynix's affiliate, SK Telecom, will develop a cloud business using Nvidia's Vera Rubin systems. Nvidia's Raj Mirpuri stated that the deal ensures a stable supply of high-bandwidth memory (HBM) for AI processors and graphics cards. Samsung also signed a memorandum of understanding with Broadcom worth approximately 200 billion dollars, enhancing their memory and foundry collaboration. On Monday, SK Hynix shares traded at 1,752,000 won, down from Friday's close and down 11.38% over five sessions. Samsung's stock fell 0.50% to 248,500 won, extending a 10.05% decline over five days. Nvidia closed down 0.92% at 206.84 dollars before a slight recovery. The muted stock reactions suggest that investors are taking profits rather than pursuing further AI headlines. Both companies will report quarterly earnings later this week, which will indicate whether the surge in chip orders translates into profit.

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