Key Highlights
- Nvidia shares gained approximately 2% on Monday, recovering some of Friday’s 6.2% decline
- Jensen Huang told investors the recent market decline offers a chance to purchase shares “at a discount”
- The chipmaker revealed a long-term memory technology collaboration with SK Hynix for AI systems
- A new partnership with SK Telecom targets gigawatt-scale AI cloud infrastructure across South Korea and Asia
- The company’s forward P/E ratio has dropped to 20.16x from approximately 26x before the selloff
Shares of Nvidia advanced nearly 2% during Monday’s morning session, reaching $209.10, following a sharp 6.2% decline on Friday. The chipmaker was among numerous semiconductor stocks pressured last week after Broadcom delivered disappointing forward guidance and broader market anxiety about rising interest rates intensified. Friday’s market turbulence erased roughly $1 trillion in value from technology companies and pushed the Nasdaq Composite down 4%.
Over the weekend, Nvidia’s CEO Jensen Huang traveled to Seoul, South Korea for meetings with strategic partners. During interactions with the press, he directly commented on the recent market volatility.
“Whatever happened to the stock market, you should be very happy because now you can buy at a discount,” Huang stated.
He emphasized that investors ought to feel “excited” about the downturn, highlighting the nascent phase of artificial intelligence advancement as justification for maintaining a bullish long-term outlook.
Strategic Partnerships Announced in South Korea
During his visit to South Korea, Nvidia unveiled two significant collaborative agreements with Korean enterprises.
On Sunday, Nvidia and SK Hynix formalized a multiyear strategic alliance focused on technology development. The partnership will concentrate on creating advanced memory chip solutions specifically designed for artificial intelligence infrastructure.
On Monday, SK Telecom disclosed an agreement with Nvidia to construct gigawatt-scale AI cloud computing capabilities throughout South Korea. The collaboration also encompasses ambitions to extend these services to additional Asian markets.
SK Telecom’s American depositary receipts climbed roughly 2.9% in Monday’s morning trading session. The telecommunications company’s shares had tumbled 8.7% during Friday’s broad selloff.
Current Valuation Metrics for Nvidia
Prior to last Friday’s market decline, Barron’s had identified Nvidia as an attractive investment opportunity when shares were hovering around $226. At that valuation level, the forward price-to-earnings multiple stood at approximately 26 times.
Following the market correction, the stock currently trades at a forward earnings multiple of 20.16 times based on FactSet data. This represents a meaningfully reduced valuation compared to levels seen just days earlier.
Friday’s semiconductor sector weakness stemmed primarily from Broadcom’s guidance announcement, which disappointed some market participants. Concerns about interest rate trajectories compounded selling pressure throughout the broader technology sector.
Nvidia wasn’t the only chip stock recovering Monday. Several semiconductor companies regained lost ground as Huang’s optimistic commentary circulated among investors.
Looking beyond semiconductors, Oracle’s earnings report scheduled for Wednesday will provide additional insights into enterprise AI spending trends. Apple is hosting its annual Worldwide Developers Conference on Monday, with expectations for announcements related to its artificial intelligence roadmap and potentially a redesigned Siri assistant.
The SpaceX IPO is anticipated this Friday as well. The public offering could assign Elon Musk’s aerospace company a valuation near $1.8 trillion, potentially establishing it as the largest initial public offering in financial market history.
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