Nvidia’s Two-Pronged Offensive: A Korean Infrastructure Blitz and a Washington Policy Pivot
Published on 07/25/2026 at 04:31 | Redaktion boerse-global.de
Jensen Huang had never posted on X before. On July 24, 2026, the Nvidia chief broke that silence with an open letter titled “Open Weights and American AI Leadership,” co-signed by more than 20 technology companies and research organizations including Microsoft, Meta, IBM, Palantir, and Mistral AI. The message to US policymakers was blunt: don’t impose premature restrictions on open AI models. For Nvidia, the move is as much about business as it is about politics — a larger ecosystem of open models means more customers needing the chips and data-center infrastructure that the company sells.
That same week, Huang was in Silicon Valley for an AI summit, where he sealed a series of multibillion-dollar deals alongside South Korea’s President Lee Jae-myung and Samsung chief Jay Y. Lee. The agreements position the country as a cornerstone of Nvidia’s global AI infrastructure buildout, spanning direct capital investments, long-term chip supply contracts, and joint research initiatives.
A $1 Billion Bet on Naver’s Data Center
The centerpiece of the Korean push is a $1 billion investment by Nvidia into Naver, the South Korean internet giant, to expand its artificial intelligence data center. Naver founder Lee Hae-jin said Saturday that the combined commitment from Nvidia and investor Brookfield totals roughly $10 billion. The facility, known as GAK Sejong, will launch with 55 megawatts of capacity and scale into the gigawatt range by 2029.
Alongside that, Nvidia is deepening its existing partnership with the SK Group. The two sides plan data centers with a combined capacity exceeding two gigawatts on the Korean peninsula, with the first facility slated to open in 2027. SK puts the total value of that initiative at more than $500 billion. Nvidia is also helping SK Hynix design future HBM memory chips — the critical components for training large AI models. Samsung and SK Hynix, which together control roughly 80% of the global HBM market, signed long-term supply agreements not only with Nvidia but also with OpenAI and Broadcom. The package was rounded out by a deal with Hyundai covering autonomous vehicles and physical AI, plus a previously announced $300 million research lab with KAIST university.
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Record Revenue, Slower Stock Momentum
The political and infrastructure moves come as Nvidia continues to deliver on its operational story. In the first quarter of fiscal 2027, which ended in April 2026, the company posted record revenue of $81.6 billion — an 85% jump from a year earlier. That marks an acceleration from the second quarter of fiscal 2026, when revenue came in at $46.7 billion, up 56%. For the current quarter, Nvidia has guided for revenue of roughly $91 billion.
Yet the stock has not kept pace with that operational momentum. Shares have gained 15.26% year to date — a far cry from the explosive growth of 2024 and 2025. On Friday, the stock closed at €184.74 in German trading, up 0.62% on the day but still 8.77% below its 52-week high of €202.50, reached in May. Bank of America maintains a buy rating with a price target of $350, pointing to Nvidia’s entry into the AI CPU market with its new Vera architecture as a catalyst.
Resilience Amid a Tech Sell-Off
The Korean announcements landed during a turbulent week for technology stocks. Disappointing quarterly results from Tesla and a sharply raised capital expenditure outlook from Alphabet triggered a broad sell-off that wiped roughly $787 billion in market capitalization from the “Magnificent Seven” index in a single day. Semiconductor stocks were hit hard — the Philadelphia Semiconductor Index lost 4.5% in one session, with Intel and Micron both falling by double digits.
Nvidia proved notably resilient in that environment. In German trading Friday, the stock closed at €182.00, down just 0.80% from the prior day — far milder than the broader tech rout. For the week, it still managed a 2.70% gain. The company’s market capitalization stands at roughly €4.45 trillion, keeping it among the world’s most valuable corporations despite recent price swings.
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The Valuation Debate Intensifies
While Nvidia’s revenue and operating margins continue to grow at rates in the upper double-digit to low triple-digit percentages, the debate over its valuation is heating up. Critics point to a widening gap between the trailing twelve-month price-to-earnings ratio and the forward P/E, which could signal fading earnings momentum. Compared to rivals like AMD and Broadcom, which trade at significantly higher multiples, Nvidia still looks relatively cheap on metrics such as operating margin, return on capital, and free cash flow.
Investor Michael Burry sees it differently. The famous bettor against the housing market has expanded his bearish positions against Nvidia and a broad semiconductor ETF, warning of a potential market correction that he compares to the dot-com bubble of 1999-2000. He cites extreme valuations and a heavy concentration of the market in a handful of technology giants. Institutional investors are split: asset manager Quilter Plc added more than 300,000 Nvidia shares in the second quarter, while company insiders have reported sales totaling hundreds of millions of dollars in recent months. The analyst consensus remains largely bullish, with price targets well above current levels.
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