What happened
SK Hynix and Samsung signed combined $950 billion in AI chip supply agreements with Nvidia and Broadcom over the weekend. SK Hynix will supply $750 billion in memory chips to Nvidia and other US companies over several years, with Nvidia's portion at $500 billion covering new data centers targeted for 2027. Samsung separately signed a memorandum of understanding worth an estimated $200 billion with Broadcom to expand memory and foundry collaboration.
Why it matters
Despite the scale of these announcements, both South Korean stocks fell in Monday trading—SK Hynix down 11.38% over five sessions and Samsung down 10.05% over the same period—signaling that much of the AI rally is already reflected in current prices. The muted reaction suggests investors are booking profits on stocks that have risen sharply this year on AI demand, rather than rewarding the deals themselves.
What to watch
Samsung and SK Hynix will report quarterly earnings later this week, which will show whether soaring chip orders are converting into profit and whether this month's record deal flow warrants investor attention or has already become old news.
Summaries like this, in your inbox every morning.
The $950 billion in combined AI chip deals announced by SK Hynix and Samsung represent a massive endorsement of AI infrastructure investment by two of the industry's largest customers, Nvidia and Broadcom. SK Hynix's $750 billion commitment secures a stable supply of high-bandwidth memory (HBM)—the specialized chips that power AI processors—over several years, with Nvidia anchoring the deal at $500 billion. Samsung's $200 billion memorandum with Broadcom deepens their collaboration in memory and foundry services. Yet the market's reaction reveals an important truth about AI valuations: the sector has already captured investor enthusiasm. SK Hynix shares fell 11.38% over five sessions and Samsung declined 10.05% over the same period, despite the record announcements. This disconnect reflects that both South Korean stocks have already surged this year on AI demand, and traders are taking profits rather than chasing another headline, no matter how large. The real test comes this week when both companies report quarterly earnings, which will reveal whether the soaring orders are translating into actual profit growth or whether the market's skepticism is justified.
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