On July 26, 2026, Nvidia announced a $1 billion investment in South Korean internet firm Naver to build an AI data center, partnering with U.S. private equity firm Brookfield. The facility will run on Nvidia's AI computing hardware and forms part of a larger push with SK Group to construct over 2 gigawatts of AI data center capacity-enough to supply roughly 1.5 million homes. The first AI computing factory, built by SK Telecom, is expected to begin operations next year.
Nvidia's chips are central to the AI boom, and this deal cements the company's physical infrastructure footprint in Asia. The new data center taps into South Korea's engineering talent and its concentration of semiconductor manufacturing. With a market cap near $5.01 trillion, Nvidia operates at the intersection of semiconductors and AI, far from its origins in graphics processing for gaming.
The infrastructure play in South Korea
The Naver data center will add a large block of GPU compute to the region. Meanwhile, the collaboration with SK Group aims for more than 2 gigawatts total, a scale that puts it among the largest AI-specific builds announced. SK Telecom's first AI factory comes online next year, giving developers and enterprises in Asia closer access to Nvidia-powered training and inference hardware. For IT and development teams managing cloud or hybrid infrastructure, these projects expand the supply of high-performance compute that can be rented or integrated into existing pipelines. Professionals following AI for IT & Development will see the ripple effects in workload planning and vendor selection.
Financial signals: discount or danger?
GuruFocus assigns Nvidia a GF Value of $368.30, meaning the stock's recent price of $206.84 sits 43.8% below that estimate. However, it also carries a "Possible Value Trap, Think Twice" label, cautioning that the discount might not be a simple buying opportunity. The trailing P/E ratio of 31.68x contrasts with a five-year median of 58.52x, pointing to a cheaper multiple relative to its own history. The GF Score of 95 out of 100 reflects top marks in profitability (10/10) and growth (10/10), but a valuation rank of 4/10 underscores the tension between operational performance and market price.
Insiders shed shares
Insider transactions over the past three months show $410.6 million in sales and no purchases. That volume of selling can hint at how executives view the stock's near-term trajectory, especially when paired with the valuation warnings already flagged by third-party metrics.
Why this matters for IT and development
Capacity additions like these affect more than Nvidia's balance sheet. They change the available compute supply for training models, running inference, and testing AI applications. For developers and infrastructure engineers, more GPU-dense data centers in Asia mean lower-latency access and potential shifts in cloud pricing. The South Korean buildout also signals a maturation of AI infrastructure beyond the U.S. and into regions with strong semiconductor ecosystems, a signal for teams planning global deployments.
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