NVIDIA and SK Group Unveil $500 Billion+ AI Deal Amid Booming Demand

NVIDIA has partnered with SK Group on a massive AI infrastructure deal worth over $500 billion. This collaboration includes a 2-gigawatt AI factory using NVIDIA's Vera Rubin and DSX, which is expected to be operational by 2027. Additionally, the two companies have agreed to a long-term tie-up for AI memory with SK Hynix.

Analysts believe that SpaceX's computing plans could add over $160 billion to Nvidia's data-center revenue by 2027, further boosting investor interest in the company. As a result, investors are favoring NVIDIA compared to its peers.

However, Bank of America has warned that memory price rises may cut NVIDIA's gross margin by around 60 basis points on its Rubin rack, with long-term gross margins forecasted near 73-74%, down from around 75% currently.