Nvidia (NASDAQ:NVDA), the biggest company globally, has selected South Korea's SK Hynix to be the memory supplier for its new Vera chip, a move that may supercharge the latter's stock.

Nvidia Selects SK Hynix for Vera Memory Chips

SK Hynix stock has jumped by 220% this year and by 817% in the last 12 months, making it one of the best gainers globally. Its 1,500% surge in the last five years has helped to transform it into a $1 trillion company.

SK Hynix stock five-year performance | Source: TradingView

In a statement, Nvidia's Jensen Huang said:

"We had a very big year this year with SK Hynix, and we are preparing for a very, very large second half of the year and next year. We introduced Vera CPU, which is a revolutionary CPU, and it will also use SK Hynix's DRAM."

The announcement will likely boost the SK Hynix stock price when the markets open on Monday. Besides, Nvidia believes that its Vera CPUs will eventually be a $200 billion business, helped by the ongoing growth of AI agents.

Nvidia has already inked a major partnership with Microsoft (NASDAQ:MSFT) to launch its first Windows CPUs. It will expand its services to other PC manufacturers like Lenovo, Dell, and HP. 

SK Hynix's business has grown rapidly in the past few years, helped by the ongoing memory shortage and price increases. This surge has continued this year, with the shortage escalating. Its most recent results showed that its revenue came in at 52.58 trillion KRW ($34 billion), up by 60% QoQ and 198% YoY.

Most of this growth was because of the ongoing memory chip price and volume surge during the quarter. Other companies in the industry have also recorded strong growth, with Micron (NASDAQ:MU) and Samsung Electronics crossing the $1 trillion market capitalization mark.

Nvidia's Growth is Accelerating

Nvidia's entry into the CPU industry is a major game-changer for the company as it has focused mostly on GPUs for years. It has now become a direct competitor to companies like Advanced Micro Devices (NASDAQ:AMD), Intel (NASDAQ:INTC), and Qualcomm (NASDAQ:QCOM). 

If successful, the business could help supercharge Nvidia's revenue growth in the coming years. Its latest results showed that revenue surged 85% year over year in the first quarter to $81 billion, while management guided for second-quarter revenue of approximately $91 billion.

Analysts already expect its business growth to continue, with the average annual revenue expected to be $391 billion, followed by $550 billion next year.

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