SK Hynix (000660.KS) Stock Surges After Nvidia Taps It for Vera CPU Memory

Key Highlights

• Nvidia CEO Jensen Huang announced SK Hynix will supply DRAM for the new Vera data-center processor
• Partnership expected to expand significantly through late 2026 and continuing into 2027
• Official cooperation agreement between Nvidia and SK Group scheduled for Monday announcement
• Memory supply constraints projected to continue for multiple years amid surging AI demand
• Huang’s South Korea trip includes meetings with Samsung, Hyundai, and LG leadership teams

During a weekend visit to Seoul, Nvidia’s CEO Jensen Huang revealed that SK Hynix DRAM will power the company’s upcoming Vera data-center CPU. The disclosure followed a Sunday meeting between Huang, SK Group Chairman Chey Tae-won, and SK Hynix CEO Kwak Noh-jung at Kkanbu Chicken restaurant, where the executives shared the popular Korean combination of fried chicken and beer known as “chimaek.”

According to Huang, the collaboration between Nvidia and SK Hynix is projected to experience significant expansion from the latter half of 2026 continuing through 2027. Both organizations plan to present their formal partnership strategy to media representatives on Monday morning.

The Vera processor represents Nvidia’s inaugural standalone CPU designed specifically for data centers, positioning the company as a direct rival to Intel’s Xeon processors and AMD’s Epyc chips. Additionally, it competes with proprietary solutions developed by cloud computing leaders such as Amazon’s Graviton processor series.

This partnership solidifies SK Hynix’s status as a critical supplier within the artificial intelligence hardware ecosystem. For shareholders of the South Korean memory manufacturer, this development provides strong evidence that revenue streams from AI infrastructure investments remain robust.

Persistent Supply Constraints Ahead

Huang offered straightforward commentary regarding ongoing supply chain challenges. He indicated that shortages affecting everything from semiconductor wafers to advanced packaging materials and silicon photonics components will remain problematic for the foreseeable future.

“It is going to persist for several years,” he said.

While this presents challenges for companies attempting to secure chip supplies, it reinforces favorable pricing conditions for memory manufacturers including SK Hynix and Samsung.

The demand surge stems from cloud service providers and enterprise organizations accelerating their AI infrastructure deployments. Huang’s remarks indicate that market demand currently exceeds the supply chain’s production capabilities.

Broader Strategic Engagement

Nvidia’s agenda in Seoul extends well beyond the SK Hynix partnership. Huang has scheduled discussions with executives from Samsung Electronics, Hyundai Motor Group, and LG Group throughout his South Korean visit.

He also revealed ongoing conversations with telecommunications companies regarding network infrastructure’s evolving role in AI ecosystems. This suggests that AI computing workloads may progressively expand from traditional centralized data centers into telecommunications network architectures.

Huang characterized the Vera processor as representing a significant advancement in processing technology. Nvidia unveiled Vera during the Computex conference in Taipei in June, where Huang and SK Group Chairman Chey were photographed together at the SK Hynix exhibition space.

The business relationship between Nvidia and SK Hynix encompasses AI supercomputing systems, CPU development, and robotics implementations, Huang noted. He emphasized that both companies are collaborating across numerous industry sectors.

Nvidia (NVDA) stock finished Friday’s trading session at $135.05, reflecting gains exceeding 170% over the trailing twelve months. SK Hynix shares trade on the Korea Stock Exchange under ticker symbol 000660.