Nvidia Strikes New Chip Deal, Pressures SK Hynix and Samsung Shares
1h ago|4 min readStandard
Fazen Markets Editorial Desk
Collective editorial team · methodology
nvidiask-hynix
Fazen Markets Editorial Desk
Collective editorial team · methodology
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Nvidia announced a new memory chip supply deal on 8 June 2026, triggering immediate pressure on key AI sector stocks. The company's own shares fell sharply, trading at $205.10 as of 01:46 UTC today, a 4.49% decline from its previous close. The announcement contributed to a broader retreat in the AI-driven technology rally, with South Korea’s Kospi index poised for another day of sharp losses. Marketwatch first reported the news, highlighting the regional impact on major semiconductor suppliers SK Hynix and Samsung Electronics.
The AI chip sector has been a primary engine for global equity gains throughout 2025 and early 2026, with Nvidia consistently at the forefront. The last major supply deal shakeup occurred in late 2025, when Nvidia's pivot to onshore certain packaging capacities led to a 7% single-day drop in select Asian foundry stocks. The current macro backdrop features elevated U.S. Treasury yields, with the 10-year note trading near 4.2%, fostering an environment less forgiving of high-multiple growth stocks. The immediate catalyst is the specific nature of this new deal, which market participants interpret as a move to diversify sourcing and potentially secure more favorable pricing terms, directly impacting the revenue projections for incumbent suppliers.
This development interrupts a multi-quarter trend where memory suppliers like SK Hynix enjoyed premium pricing and allocation priority for high-bandwidth memory (HBM) used in AI accelerators. The previous quarter saw SK Hynix report record operating margins above ss, largely attributed to its dominance in the latest HBM3e standard. The timing is critical as global data center spending growth shows early signs of moderation, increasing competitive pressure among all participants in the AI hardware stack. Investors are now reassessing the sustainability of margins across the entire supply chain.
The market reaction was swift and pronounced. Nvidia traded within a daily range of $204.34 to $214.87, settling near the session low at $205.10. Its market capitalization shed approximately $140 billion in the session, reflecting the high sensitivity of its valuation to any perceived shifts in its cost structure or supplier relationships. This decline notably underperformed the broader PHLX Semiconductor Index (SOX), which was down 2.1% on the same day. The pressure extended to South Korean equities, where the Kospi index fell 1.8%, marking its third consecutive day of losses and underperforming the MSCI Asia ex-Japan index's 0.5% decline.
A comparison of recent performance highlights the sector-wide pressure. Over the past five trading sessions, Nvidia is down 8.7%, while SK Hynix shares listed in Seoul are down 12.4%, and Samsung Electronics is down 6.2%. This contrasts with the S&P 500's 1.2% decline over the same period. The yield on the 10-year U.S. Treasury note, a key benchmark for discounting future tech earnings, rose 5 basis points to 4.21%, compounding the selling pressure. Trading volume in Nvidia was 45% above its 30-day average, indicating high institutional participation in the move.
| Metric | Nvidia (NVDA) | SK Hynix (000660 KS) | Kospi Index |
|---|---|---|---|
| Price Change (8 Jun) | -4.49% | -5.1% (intraday) | -1.8% (intraday) |
| 5-Day Performance | -8.7% | -12.4% | -4.3% |
| YTD Performance (prior to news) | +22% | +35% | +3% |
The deal's second-order effects are concentrated in the semiconductor equipment and memory subsectors. Companies like Micron Technology (MU) may face indirect pressure as the market reassesses HBM pricing power, though it could also benefit from being an alternative supplier not named in the current deal. Conversely, the undisclosed new supplier, if a smaller or emerging player, could see its stock surge on the allocation win. Taiwanese foundries like Taiwan Semiconductor Manufacturing Company (TSM) may see a neutral to slightly positive impact, as their role is largely insulated from memory supplier changes, focusing instead on logic chip manufacturing.
A key counter-argument is that the sell-off may be overdone if the new deal simply supplements, rather than replaces, existing supply from SK Hynix and Samsung. Nvidia's scaling requirements are immense, and multiple suppliers are likely needed to meet explosive demand forecasts for 2027. The immediate market action, however, suggests a positioning unwind. Quantitative funds and momentum traders who were long the 'AI basket'—a cluster including NVDA, Korean memory stocks, and certain equipment names—are likely driving the flow, rotating capital into sectors like energy or utilities that are less exposed to tech supply chain renegotiations.
Immediate focus turns to SK Hynix's and Samsung's response, which could come in the form of official commentary or guidance adjustments ahead of their Q2 earnings releases in mid-July 2026. Any details emerging on the pricing or volume terms of Nvidia's new deal will be critical for recalibrating earnings models. The next major catalyst for the sector will be the U.S. PPI and CPI data releases on 11 June and 13 June, respectively, which will inform the interest rate path and thus the valuation framework for growth stocks.
Technically, levels to watch for Nvidia include the $200 psychological support and its 100-day moving average, currently near $195. A breach of the $204.34 daily low could accelerate selling. For the Kospi, the 2,550 level represents a key support zone tested earlier this year. If the index breaks below this on high volume, it could signal a deeper correction for Asian tech equities. The direction of the U.S. 10-year yield remains a macro overlay; a sustained move above 4.3% would continue to pressure the sector.
Nvidia's previous major supplier adjustments, such as its increased engagement with TSMC for advanced packaging in 2024, were viewed as capacity expansions and were broadly positive for the ecosystem. This new memory deal is being interpreted differently because the memory market is currently characterized by tight supply and high margins for incumbents. A shift in allocation is seen as a direct threat to those margins, whereas adding a packaging partner was additive. The 2024 shift did not trigger a comparable sell-off in peer stocks.
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