Nvidia (NVDA) shares rose nearly 2% on Monday, recovering a portion of the steep losses suffered late last week, as the company announced a series of artificial intelligence partnerships in South Korea and its CEO encouraged investors to view the recent pullback as a discount.
The gain came during a broad risk-on session for technology stocks, with the Nasdaq Composite advancing 2.06% and the S&P 500 rising 0.68%. However, Monday's move only partially offset Nvidia's 6.2% decline on Friday, when semiconductor stocks came under pressure following weaker-than-expected guidance from Broadcom and renewed concerns about the interest-rate outlook.
South Korea Partnerships Expand AI Footprint
Over the weekend and into Monday, Nvidia announced several initiatives in South Korea aimed at strengthening the country's artificial intelligence infrastructure. The company entered into a multiyear technology partnership with SK hynix to jointly develop next-generation memory technologies for AI factories, supporting growing global demand for AI infrastructure. The collaboration will also leverage Nvidia's AI software and simulation tools to improve semiconductor design and manufacturing processes.
Separately, Nvidia and SK Telecom said they plan to build a gigawatt-scale AI cloud in South Korea using Nvidia's DSX platform. The first AI factory is expected to come online in 2027, and the infrastructure will support sovereign AI, enterprise AI, physical AI, and agentic AI applications across the country. The partnership will also include joint research into next-generation AI factory architectures.
Nvidia also expanded its collaboration with NAVER. Under the initiative, NAVER plans to scale its AI infrastructure from an initial 55 megawatts to gigawatt-level capacity using Nvidia's DSX platform. The project is intended to support AI factories, sovereign AI models, and future versions of NAVER's HyperCLOVA X models while strengthening South Korea's domestic AI ecosystem.
During his visit to Seoul, Nvidia CEO Jensen Huang also disclosed a new collaboration with South Korea's LG Group. "We are working with them in motor technology as well as mechanical systems so that we can bring together humanoid robotics and the future of robotics," Huang told reporters after meeting LG Group Chairman Koo Kwang-mo. According to Huang, the partnership will focus on humanoid robots as well as data center technologies.
Huang Calls Pullback a Buying Opportunity
The South Korea announcements came as technology stocks continued to digest a sharp selloff that began late last week. South Korea's benchmark Kospi Index fell on Monday as investors reduced exposure to AI-related stocks following weakness in US technology shares. The selloff had been triggered by concerns about a potential interest-rate hike and a broader reassessment of AI-related valuations.
Asked about the market decline during his visit to Seoul, Huang characterized the weakness as a buying opportunity and reiterated his long-term confidence in artificial intelligence. "We're at the beginning of it, and whatever happened to the stock market, you should be very happy because now you can buy at a discount," Huang said. "Everybody should be very excited," he added after meeting SK Group Chairman Chey Tae-won.
Huang argued that the global buildout of AI infrastructure remains in its early stages and said demand for the data centers, computing systems, and chips required to support future AI services is likely to continue expanding. His comments echoed a message he has repeatedly delivered in recent years: that artificial intelligence will fundamentally reshape industries, economies, and the way people work, creating substantial long-term demand for the infrastructure that powers those systems.
For investors tracking the broader chip landscape, recent developments at competitors also highlight the sector's volatility. Intel Stock Surges on Reports of Google, Nvidia Foundry Wins; Shares Test Key Moving Average and Cerebras Surges 17% as Analysts Back Its Nvidia-Challenging AI Chip Strategy underscore the competitive dynamics in AI hardware. Meanwhile, Nvidia CEO Calls $1.3T Chip Rout a Discount; Analysts Weigh AI Demand vs. Rate Risks provides additional context on the broader market reaction.
This article is for informational purposes only and does not constitute financial advice.
