On June 8, Nvidia (NVDA) CEO Jensen Huang met with the executives of SK Hynix in South Korea, highlighting the growing partnership between the two companies. The American tech giant known primarily for its AI GPUs is now looking to challenge competitors like AMD (AMD), Intel (INTC), and Amazon (AMZN) in the CPU market as well. Vera is Nvidia’s first-ever attempt at launching a standalone data center CPU. With SK Hynix supplying the dynamic random-access memory (DRAM), Nvidia’s CEO expects to do a lot more business with them over the second half of 2026 and well into 2027. As AI infrastructure continues to grow, the partnership could help both firms strengthen their revenue prospects.
This collaboration is particularly meaningful for SK Hynix, as it reasserts its value in the AI industry’s supply chain. Huang’s visit to South Korea was not limited to this meeting. The CEO is scheduled to meet the management of Samsung, LG, and Hyundai in an attempt to further strengthen relationships with its key partners and suppliers. Huang also stated that Nvidia is interacting with telecommunications operators to discuss the future of telecom networks in AI infrastructure, noting that as technology advances, telecom networks could have a significant part to play in AI systems. This is consistent with how Jensen Huang has approached partnerships in the past. Since Nvidia is known for making the best products, it relies heavily on its suppliers to be able to supply the cutting-edge technology it needs for its products.
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About Nvidia Stock
Founded in 1993, Nvidia Corporation is a fabless semiconductor and AI computing company that designs GPUs, Application Programming Interfaces (APIs), AI accelerators, and system-on-a-chip units. The company operates through the Graphics and Compute & Networking business divisions. Through its CUDA ecosystem, the company enables industries ranging from autonomous vehicles to scientific research by advancing AI, accelerated computing, and data center infrastructure.
Over the past year, the stock has generated gains of around 47%. In comparison, the iShares Semiconductor ETF (SOXX) delivered exceptional gains by more than doubling during the same period. This performance gap shows that the stock clearly underperformed the broader semiconductor industry. The trend has continued this year as well, with the stock posting returns of about 12% and the ETF gaining approximately 91% year-to-date (YTD).
barchart.comNvidia’s cheap valuation on a forward earnings basis has been debated in the market for some time now. At 21.8x forward P/E, the stock is trading in line with the S&P 500’s forward earnings multiple of 22.2x. This is incredible for a stock that is leading the AI revolution and is expected to nearly double its earnings next year. However, it is what happens after that which is worrying investors. If history is anything to go by, Jensen Huang isn’t just going to sit idly once GPU demand goes down. In fact, his presence in South Korea suggests he is undoubtedly where he needs to be, launching exactly the right product that will help him dominate the AI inference period. Considering this scenario, Nvidia still looks like an attractive bet at current levels, despite the broader market’s reluctance to back it.
Nvidia's Earnings Impress Once More
The company reported its better-than-expected first-quarter fiscal 2027 earnings on May 20, beating both revenue and earnings estimates. It delivered a record-breaking quarter, with revenue, free cash flow, and operating income all reaching record levels. Revenue came in at $81.62 billion, representing 85.2% year-over-year (YoY) growth. Free cash flow totaled $49 billion, compared to $35 billion in the previous quarter. The company reported a non-GAAP gross margin of 75% and a GAAP gross margin of 74.9%. Both remained unchanged from the previous quarter.
Going forward, Nvidia expects total revenue for the second quarter to be around $91 billion, with a possible variation of 2%. According to management, the outlook does not include any revenue from China data center compute products. On the profitability side, GAAP and non-GAAP gross margins are projected to be 74.9% and 75%, respectively.
What Are Analysts Saying About NVDA Stock?
Last month, Bank of America Securities (BofA) raised the firm’s target price on NVDA stock to $320 from $300 and reaffirmed a “Buy” rating on the stock. With 2026 a year of accelerating AI sales and ROIs, the firm updated its market outlook to about $1.7 trillion, up from $1.4 trillion. Moreover, the stock is enjoying a positive sentiment. During the first week of May, the chipmaker had a “Strong Buy” rating from three different analysts. These include Oppenheimer, Wells Fargo, and Citi, with Citi having the highest target price on the stock.
The positive sentiment comes after the company announced on May 13 a collaboration with Ineffable Intelligence, a London-based AI startup. This partnership will develop reinforcement learning agents. The goal is to address one of AI’s harder problems by building systems that can discover new knowledge on their own. NVDA is one of Bank of America’s top semiconductor stock picks, alongside AMD and Broadcom (AVGO).
www.barchart.com On the date of publication, Jabran Kundi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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