# This Under-the-Radar Supplier Could Be Nvidia's Secret Weapon

Digest AI · Business & Funding · published 2026-10-03T12:15:00Z

Canonical: https://digestai.news/story/this-under-the-radar-supplier-could-be-nvidia-s-secret-weapon

## Summary

The two companies recently formed a supply and co‑development partnership that will see sk hynix deliver an estimated $500 billion worth of high‑bandwidth memory (HBM) to nvidia over the next several years.

HBM is a scarce component that sits inside nvidia’s GPUs to reduce latency and power consumption.  As of the second quarter, sk hynix holds a 50% share of the global HBM market, compared with microns 18% and samsung’s 33%.  The deal gives sk hynix a long‑term anchor contract with the largest AI infrastructure company, while nvidia secures a steady supply of the critical memory that keeps its AI chips running at peak performance.

The partnership is framed as a huge coup for both firms.  For sk hynix, the contract offers visibility to expand capacity in a cyclical market; for nvidia, it reinforces its advantage in a compute‑starved world.  The forward P/E for sk hynix is 5.5 times 2027 analyst estimates, and for nvidia it is below 15 times fiscal 2028.

## Key points

- sk hynix will supply nvidia with $500 billion of hbm memory over several years
- sk hynix holds 50% of the global hbm market share, microns 18% and samsung 33%
- the partnership gives sk hynix a long‑term anchor contract and secures nvidia a steady hbm supply

## Why it matters

The deal secures a critical, scarce memory component for nvidia’s AI chips, potentially easing supply bottlenecks and strengthening both companies’ positions in the AI infrastructure market.

## Sources

1. [This Under-the-Radar Supplier Could Be Nvidia's Secret Weapon](https://fool.com/investing/2026/10/04/this-under-the-radar-supplier-could-be-nvidias-sec) (fool.com, 2026-10-03)

Part of the developing story: [AI Chip Race Revenue Targets Market Moves](https://digestai.news/thread/arm-ceo-boosts-confidence-in-2b-agi-cpu-revenue-target) (2 stories)

## Cite

Digest AI, "This Under-the-Radar Supplier Could Be Nvidia's Secret Weapon", 3 October 2026, https://digestai.news/story/this-under-the-radar-supplier-could-be-nvidia-s-secret-weapon

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