Key Takeaways
- On June 8, Jensen Huang advised investors to “buy the dip” during a sharp AI sector downturn, with NVDA having fallen more than 15% from its May high
- Those who acted on Huang’s advice for NVDA have seen gains of 5.1% through early August, outperforming the S&P 500’s 4.3% increase during the identical timeframe
- An equally weighted portfolio consisting of NVDA, Microsoft, Amazon, and Alphabet delivered approximately 8.5% returns across the same period
- A massive $500 billion multi-year collaboration between Nvidia and SK Group was announced July 24, encompassing AI memory provision and major data center infrastructure
- NVDA began trading Tuesday at $217.55, declining 2.9%, while analyst consensus targets $304.26 with the company holding a $5.26 trillion market capitalization
During the first week of June 2026, AI and semiconductor stocks experienced a brutal selloff, losing approximately $1.3 trillion in aggregate market capitalization within days. Nvidia’s share price had retreated over 15% from the highs reached in May.
While conducting business in Seoul, Jensen Huang seized the moment to address reporters with a direct message: buy the dip. “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 declared on June 8.
His timing proved strategic. That very morning, South Korea’s KOSPI index plummeted more than 8% during intraday trading, activating market circuit breakers. Huang issued his buying recommendation as events unfolded in real time.
NVDA began Tuesday’s session at $217.55, registering a 2.9% decline. The shares have traded between a 12-month low of $164.07 and a 12-month peak of $236.54.
Eight weeks following Huang’s recommendation, investors who purchased NVDA shares on June 8 have realized returns of 5.1%, modestly exceeding the S&P 500’s 4.3% advance during the identical period.
An equally allocated portfolio spanning Nvidia, Microsoft, Amazon, and Alphabet generated roughly 8.5% returns during that timeframe, approximately twice the S&P 500’s performance. Microsoft spearheaded the group with an 18.5% surge, Amazon contributed an 11.1% gain, while Alphabet declined 0.5%.
Huang backed his statement with immediate action. Within hours of his public comments, he and SK Hynix revealed an agreement to jointly develop cutting-edge AI memory chip technology. Nvidia’s fiscal Q4 results showed revenue of $68.1 billion, representing 73% year-over-year growth, with data center operations generating $62.3 billionācomprising over 91% of total revenue.
SK Group’s Half-Trillion-Dollar Commitment
July 24 marked the announcement of a partnership between Nvidia and SK Group valued at more than $500 billion spanning multiple years. This arrangement secures AI memory component supply from SK Hynix and incorporates massive data center facilities scheduled to begin operations in 2027.
SK Telecom committed to constructing a 2-gigawatt AI data center utilizing Nvidia’s Vera Rubin processors paired with SK Hynix’s forthcoming memory technology. During that single day, aggregate AI agreements totaled approximately $950 billion.
SK Hynix’s board reinforced this commitment on Aug. 8, greenlighting approximately $38.3 billion in supplementary domestic expansion through 2031, essentially doubling its stake as Nvidia’s principal memory component partner.
Analyst Community Maintains Optimism
Wall Street analysts continue expressing confidence ahead of Nvidia’s August 26 earnings announcement. Bank of America sustained its Buy rating alongside a $350 price objective, forecasting Q2 revenue between $94 and $95 billion, potentially exceeding Nvidia’s own projections by $3 to $4 billion.
KeyCorp reaffirmed its overweight stance in July with a $330 target price. The aggregate consensus among 53 analysts reflects a Buy rating with a median price target of $304.26.
Institutional stakeholders control 65.27% of NVDA shares. The company’s board separately authorized an $80 billion stock repurchase program in May and increased its quarterly dividend from $0.01 to $0.25 per share.
When SK Hynix greenlit $38.3 billion in additional expansion on Aug. 8, it solidified its commitment to Nvidia maintaining dominance within AI infrastructure markets.
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