TLDR
- On June 8, Jensen Huang advised investors to purchase AI stocks during a selloff, with NVDA having declined more than 15% from its May highs
- Those who acted on Huang’s NVDA recommendation have seen 5.1% gains through early August, outperforming the S&P 500’s 4.3% return
- A diversified portfolio including NVDA, Microsoft, Amazon, and Alphabet delivered approximately 8.5% returns during this timeframe
- A massive $500 billion multi-year collaboration between Nvidia and SK Group was announced on July 24, encompassing AI memory solutions and data center infrastructure
- Trading at $217.55 on Tuesday morning with a 2.9% decline, NVDA carries a consensus Wall Street price target of $304.26 and commands a $5.26 trillion market capitalization
The first week of June 2026 witnessed a brutal selloff in artificial intelligence and semiconductor equities, wiping approximately $1.3 trillion from their collective valuations within days. Nvidia’s shares had retreated over 15% from peak levels recorded in May.
During a business trip to Seoul, Jensen Huang seized the moment to address reporters with a contrarian message. “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.
The CEO’s timing was no accident. South Korea’s KOSPI index had plunged more than 8% during morning trading that very day, activating market circuit breakers. Huang issued his bullish statement as markets were in free fall.
Shares of NVDA began Tuesday’s session at $217.55, declining 2.9% from the previous close. The stock’s 52-week range spans from a low of $164.07 to a high of $236.54.
Fast forward two months from Huang’s recommendation, and investors who purchased NVDA on June 8 are sitting on 5.1% gains, edging out the S&P 500’s 4.3% advance during the identical period.
An equally weighted portfolio combining Nvidia, Microsoft, Amazon, and Alphabet generated approximately 8.5% returns across that same timeframe, effectively doubling the S&P 500’s performance. Microsoft powered the group with an 18.5% surge, Amazon contributed 11.1%, while Alphabet dipped 0.5%.
Huang backed his statement with action. Shortly after his public remarks, he and SK Hynix leadership announced a collaborative agreement to develop cutting-edge AI memory technology. Nvidia’s fourth fiscal quarter delivered $68.1 billion in revenue, representing 73% year-over-year growth, with data center operations generating $62.3 billionāexceeding 91% of total revenue.
The $500 Billion SK Group Deal
July 24 marked the formal announcement of a partnership between Nvidia and SK Group valued at over $500 billion spanning multiple years. This agreement secures AI memory component supply from SK Hynix and encompasses major data center facilities scheduled to launch in 2027.
SK Telecom committed to constructing a 2-gigawatt AI data center infrastructure utilizing Nvidia’s Vera Rubin processors and SK Hynix’s advanced memory technology. That single day witnessed approximately $950 billion in total new AI-related commitments.
SK Hynix’s board of directors took further action on August 8, greenlighting approximately $38.3 billion in domestic expansion initiatives extending through 2031, reinforcing its strategic position as Nvidia’s principal memory component provider.
Wall Street Stays Bullish
Financial analysts maintain optimistic outlooks heading into Nvidia’s scheduled August 26 earnings announcement. Bank of America upheld its Buy recommendation with a $350 target price, forecasting second-quarter revenue between $94 and $95 billion, potentially exceeding Nvidia’s internal guidance by $3 to $4 billion.
In July, KeyCorp confirmed its overweight stance with a $330 price objective. The aggregate view from 53 analysts reflects a Buy rating alongside a consensus target of $304.26.
Institutional stakeholders control 65.27% of outstanding NVDA shares. The company’s board greenlit an $80 billion stock repurchase program in May while increasing its quarterly dividend dramatically from $0.01 to $0.25.
On August 8, SK Hynix’s approval of $38.3 billion in additional expansion underscored its confidence in Nvidia maintaining market leadership within AI infrastructure development.
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