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Nvidia Locks $119 Billion in Supply and Signs $500 Billion Korea Pact as CEO Forecasts 10x Chip Boom

Deals with SK Group plus other partners reflect a push to lock memory, data-center capacity, capital for an expected surge in AI compute.

Overview

  • On July 27 CEO Jensen Huang said the semiconductor industry may need to grow about tenfold to support roughly 100 billion AI agents and billions of robots, a forecast he described as his personal estimate.
  • Nvidia announced a comprehensive partnership with SK Group valued at over $500 billion to co-develop next-generation high-bandwidth memory roadmaps, buy large volumes of HBM from SK Hynix, and deploy Nvidia supercomputers and Korean AI data centers.
  • The company disclosed $119.0 billion in total supply-related commitments, up from $95.2 billion the prior quarter, as it secures long-term access to memory, advanced packaging, power and land for data centers.
  • Nvidia reported first-quarter fiscal 2027 revenue of about $81.6 billion, with Data Center revenue near $75.25 billion and a 75.0% non-GAAP gross margin, figures the company cites to justify its infrastructure push.
  • U.S. export approvals for some chips to China have not translated into full shipments because of Chinese import reviews, so Nvidia is diversifying by placing capacity and capital in South Korea and allied markets to reduce near-term geopolitical risk and scale for the agentic AI buildout.