Nvidia's South Korea deals mark a 'watershed', says Wedbush's Dan Ives

Core Insights - Nvidia is collaborating with Samsung to establish a new AI mega factory, deploying over 50,000 GPUs from Nvidia, with Hyundai also utilizing 50,000 Nvidia chips in a new AI factory [1][5] - South Korea's presidential office announced that more than 260,000 GPUs will be deployed across both public and private sectors, highlighting the shift towards AI infrastructure [2][5] - The computing landscape is undergoing a fundamental transformation due to AI and accelerated computing, necessitating a transition from traditional computing systems [3][4] Nvidia's Market Position - The deal with South Korea is significant for Nvidia, marking its entry into the AI revolution in the region, which is crucial for its market presence [6][7] - Nvidia's market cap is projected to reach $6 trillion within the next 12 to 18 months, driven by the demand for AI technologies [9] - The company is seen as a pivotal player in the tech market, with its foundational role in the ongoing fourth industrial revolution [10] Global AI Landscape - The collaboration with South Korean companies indicates a broader global interest in AI, moving beyond Silicon Valley [8] - Nvidia's strategic importance is underscored by its partnerships with major companies and governments, positioning it as a key player in the AI arms race [12][13] - The potential for Nvidia in the Chinese market is significant, with estimates suggesting a $20 billion annual opportunity, emphasizing the importance of negotiations with China [12] Future Considerations - Supply constraints and power supply issues could pose challenges for Nvidia in the coming years, particularly in the context of expanding AI infrastructure [14][15] - The ongoing demand for AI technologies suggests a sustained growth trajectory for Nvidia, reinforcing its status as a leader in the industry [9][10]