LG Electronics jumps as Nvidia alliance sharpens focus on robotics and AI

LG Electronics shares rose sharply on the 14th after LG Group Chairman Kwang-mo Koo and Nvidia CEO Jensen Huang formalized a broader strategic partnership centered on what the companies described as physical AI. LG Electronics traded at 213,000 won as of 2:19 p.m., up 3.15% from the previous session, after earlier climbing nearly 9% to 225,000 won. Investors focused on the potential for robotics and artificial intelligence cooperation to accelerate, particularly around a planned humanoid reference model that will combine LG's hardware capabilities with Nvidia's robotics AI platform. Under the agreement signed at Nvidia's California headquarters on the 13th local time, the companies set robotics, AI factories and mobility as three core areas of cooperation. Analysts say the tie-up could prompt a valuation shift for LG Electronics away from its legacy home appliance business toward order-based growth areas such as robotics, automotive electronics and data centers. iM Securities recently raised its target price for the stock to 250,000 won from 165,000 won, citing stronger automotive electronics profitability and expansion potential in cooling solutions and robotics. LG Electronics has already set up a robotics business center, started initial actuator production at a pilot line in Changwon and is expected to begin taking outside orders in the second half of the year. Data center cooling is another growth driver, with the company securing 600 billion won ($430 million) in orders in the first half and annual orders projected to reach the trillion-won range this year.

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.