SK Group Chairman Warns of Bottlenecks Due to Rapid Growth of AI Data Centers, According to Report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 28 2025
0mins
Should l Buy NVDA?
Source: SeekingAlpha
AI Data Center Growth: SK Group Chairman Chey Tae-won highlighted that the rapid expansion of AI data centers is causing supply bottlenecks for chips and other essential components.
Global Competition in AI: Chey emphasized the intense global competition in AI, noting that major economies like the U.S. and China have implemented national strategies to gain an advantage.
Event Context: Chey made these remarks during a business event at the APEC summit in South Korea, attended by global business leaders, including U.S. President Donald Trump and Chinese President Xi Jinping.
SK Hynix's Role: SK hynix, a subsidiary of SK Group, is a significant supplier of High-Bandwidth Memory chips to Nvidia, which is positioned to benefit from the growing AI market.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 180.050
Low
200.00
Averages
264.97
High
352.00
Current: 180.050
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Optimistic Future Outlook: Broadcom projects AI chip revenue to exceed $100 billion by 2027, having secured the necessary supply chain, reflecting strong confidence in future demand, particularly with a positive relationship with OpenAI.
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See More
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- Derivatives Trading: Hedge fund managers are actively trading options on the iShares Bitcoin Trust (IBIT), the top Bitcoin ETF globally by assets under management, reflecting sustained interest in Bitcoin derivatives despite their inherent risks.
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