SK Hynix Invests $10 Billion to Establish AI Company
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: CNBC
- New Company Formation: SK Hynix announced the establishment of a new U.S.-based entity, tentatively named 'AI Company,' committing at least $10 billion to seize AI growth opportunities and further advance its global AI strategies.
- Restructuring and Integration: The new entity will be created by restructuring its California-based subsidiary Solidigm, which will transition to Solidigm Inc., aimed at enhancing synergies across SK Group's AI initiatives.
- Surging Market Demand: In response to skyrocketing demand for AI chips, SK Hynix is accelerating investments, pledging nearly $13 billion to build an advanced chip packaging plant in South Korea to meet the rising need for memory chips.
- Policy Alignment: The establishment of the new company aligns with the Trump administration's policies, which have threatened tariffs on semiconductor manufacturers unless they heavily invest in the U.S., showcasing SK Hynix's strategic flexibility in navigating trade tensions.
Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 264.97 USD with a low forecast of 200.00 USD and a high forecast of 352.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 186.470
Low
200.00
Averages
264.97
High
352.00
Current: 186.470
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.
