Will South Korea’s gigawatt-scale AI factory deal redefine NVIDIA’s (NVDA) infrastructure story?

• Recently, SK Group and NVIDIA agreed to a more than USD 500 billion AI infrastructure partnership anchored by the planned 2 GW Vera Rubin DSX AI factory, NAVER, Brookfield and NVIDIA outlined a USD 10 billion expansion of South Korea’s sovereign AI factory footprint, and NVIDIA deepened research and packaging relationships with KAIST and Amkor.
• Taken together, these moves demonstrate that NVIDIA is expanding its full-stack AI platform into building a sovereign, hyperscale “AI factory,” while strengthening the talent, memory, and advanced packaging foundations that could impact the resiliency and versatility of future AI infrastructure businesses.
• Here, we consider how NVIDIA’s expansion into a gigawatt-scale AI factory in South Korea will inform and stress test its existing investment story.

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NVIDIA Investment Story Summary

To own NVIDIA today, you must believe that the AI ​​”factory” will become the core layer of the global infrastructure, and that NVIDIA’s full stack will remain central to its construction. The Korean announcement deepens that case by linking Vera Rubin, DSX software, and HBM4 memory to multi-gigawatt deployments. While the biggest near-term drivers remain hyperscalers and sovereign AI capex, key risks include export controls, customer concentration, and whether AI data centers reach power or regulatory limits.

Of the recent developments, SK Telecom’s planned partnership with SK Group worth over US$500 billion, anchored by its 2 GW Vera Rubin DSX AI factory, appears to be the most relevant. This highlights how quickly NVIDIA is scaling up to utility-scale computing, which could amplify both the company’s upturn from global AI infrastructure demand and its exposure to both slower spending and advanced memory and manufacturing capacity constraints from large customers.

But even with these mega-deals, investors need to be aware that there may still be concentrations of power, regulation, and customer…

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NVIDIA plans to have $676.2 billion in revenue and $363.6 billion in revenue by 2029. This would require a 38.7% annual revenue increase, or an increase in revenue of approximately $204 billion from the current $159.6 billion.

We reveal how NVIDIA’s projections resulted in a fair value of $296.81, which is 43% higher than the current price.

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Some analysts with the lowest forecasts were already assuming profits of around US$352.5 billion by 2029, but they remain concerned that the upside could be blunted by export restrictions or hyperscalers for their own chips, a reminder that reasonable views on NVIDIA’s future can vary widely and may change again as these Korean AI factory plans move forward.

Check out the other 184 fair value estimates for NVIDIA – Find out why the stock is worth 17% below its current price.

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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.

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