Samsung Electronics and SK Hynix landed enormous AI chip contracts totaling $950 billion with Nvidia and Broadcom recently, yet their shares dropped in early trading, highlighting a disconnect between deal announcements and market expectations.
Record AI Chip Agreements
SK Hynix committed to supplying $750 billion worth of memory chips to Nvidia and other U.S. companies over the coming years. Nvidia’s share of this arrangement alone amounts to about $500 billion, intended to support new data centers planned for 2027. also SK Hynix's affiliate SK Telecom plans to build a cloud infrastructure using Nvidia’s Vera Rubin platform.
Nvidia’s enterprise VP Raj Mirpuri emphasized that this deal guarantees a reliable supply of high-bandwidth memory (HBM), key for powering AI processors and graphics cards.
Separately, Samsung signed a memorandum of understanding with Broadcom valued around $200 billion, aiming to deepen their partnership in memory and foundry services, according to statements released last Friday.
Market Response Suggests AI Rally Is Priced In
Despite the sheer scale of these agreements, SK Hynix shares dropped slightly to 1,752,000 won on Monday morning, marking an 11.38% decline over the previous five trading sessions. Samsung's stock fell 0.50% to 248,500 won, extending a five-day slide of over 10%. Nvidia’s shares also slipped 0.92% to $206.84 in Friday's close, before recovering slightly in after-hours trading.
Both South Korean chipmakers have been undergoing a notable correction recently, with SK Hynix's stock showing declines even after positive news, reflecting a premium already baked into U.S. markets following its major Nasdaq listing earlier this month.
Investors seem to be locking in gains following a strong run fueled by AI-driven demand, rather than chasing fresh headlines regardless of deal size.
Upcoming Earnings Will Reveal Real Impact
The critical moment will come later this week when Samsung and SK Hynix release their quarterly earnings. These reports will clarify whether the surge in chip orders is translating into profit. The results could sway investor sentiment, determining if the recent record-setting deals mark a genuine industry shift or simply reiterate growth expectations already factored into current valuations.
