Copyright Benzinga
Nvidia Corporation (NASDAQ:NVDA) has announced a deal to supply more than 260,000 of its cutting-edge AI chips to the South Korean government and some of the country’s major corporations. Key Partnership With Samsung, Hyundai, SK Group Nvidia’s latest AI chips will be utilized for the development of AI infrastructure in South Korea. The government is set to utilize over 50,000 of Nvidia’s most advanced chips, while Samsung Electronics Co Ltd (OTC:SSNLF), SK Group, and Hyundai Motor Group (OTC: HYMTF) (OTC: HYMLF) plan to deploy up to 50,000 AI chips across their smart factories, which focus on semiconductor and vehicle production. Some of the other corporations that have joined hands with Nvidia are NAVER, the Korea Institute of Science and Technology Information, and the Kakao Corp. “Just as Korea’s physical factories have inspired the world with sophisticated ships, cars, chips, and electronics, the nation can now produce intelligence as a new export that will drive global transformation,” said Nvidia CEO Jensen Huang. The deal was disclosed following a meeting between Huang, South Korean President Yoon Suk-yeol, and the leaders of Samsung, SK Group, and Hyundai Motor Group at the Asia Pacific Economic Cooperation (APEC) summit in Gyeongju. See Also: XRP Drops 6% In 24 Hours: What’s Going On? Looking Beyond China This development follows Nvidia’s recent milestone of becoming the first company to reach a $5 trillion market capitalization, surpassing both Apple Inc. (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT). Huang attributed this achievement to the unprecedented demand for Nvidia’s AI chips, which has secured the company over $500 billion in chip orders through 2026. Nvidia’s market share in China has plummeted from 95% to zero, according to Huang. He expressed concern over the policies of the Trump Administration that led to this outcome, stating, “I can’t imagine any policymaker thinking that’s a good idea—that whatever policy we implemented caused America to lose one of the largest markets in the world to zero.” The recent deals could potentially be a driving factor behind Nvidia to look beyond China and strengthen its presence in South Korea. Meanwhile, President Donald Trump stated that during his Thursday meeting with Chinese President Xi Jinping, he urged China to have direct discussions with Huang. He also clarified that Blackwell chips were not particularly discussed in the meeting. According to Benzinga Edge Stock Rankings, Nvidia has a growth score of 97.93% and a momentum rating of 89.21%. Click here to see how it compares to other leading tech companies. Price Action: On a year-to-date basis, Nvidia stock surged 46.63% to close at $202.81 on Thursday, as per data from Benzinga Pro. READ NEXT: Nvidia Effect: Key Suppliers Have Already Sold Out AI Memory Chips For 2025 Image via Shutterstock
