Nvidia and SK Hynix team up on chip shortage — ride the AI hardware boom
Nvidia's CEO is warning that the global shortage of AI chips is far from over, and the company is holding a major press conference with South Korea's SK Hynix on Monday to announce new cooperation plans. Bank of America also just updated its Nvidia forecast after a direct meeting with the CFO.
Idea
A prolonged chip shortage means companies making the chips can charge more and have guaranteed demand, which is great for their stock prices. Nvidia and SK Hynix are teaming up to address this bottleneck, which signals to the market that they are aggressively capturing future revenue. Combined with a fresh analyst forecast reset from Bank of America after talking to Nvidia's CFO, Wall Street will likely bid these stocks up as confidence in their growth returns.