"It Rose More Than Samsung Electronics and SK hynix"... LG Electronics Soars 67% on AI and Robots

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[Financial News] While the KOSPI recovered the 7,800 level, market attention was focused almost entirely on Samsung Electronics and SK hynix. The saying that the index cannot move without "Samsung and SK hynix" even circulated, but the top stock performer in May was LG Electronics.
According to the Korea Exchange (KRX) on the 22nd, LG Electronics surged 66.78% from the 4th to the 21st of this month. Over the same period, SK hynix rose 50.86%, while Samsung Electronics gained 35.83%. In the midst of the semiconductor frenzy, LG Electronics posted an even steeper rally.
A securities industry official analyzed that the market has begun to see LG Electronics not simply as a TV and refrigerator maker, but as a Physical AI platform company spanning AI infrastructure, robots, vehicle components, and data center cooling.
In fact, securities firms have been raising their target prices one after another over the past month. Mirae Asset Securities lifted its target price from 150,000 won to 190,000 won, and Eugene Investment & Securities Co., Ltd. raised it from 132,000 won to 195,000 won. Hana Securities went as high as 230,000 won.
In the past, reports on LG Electronics were largely limited to a recovery in home appliance demand. Recent reports, however, have introduced entirely different keywords. Terms such as "humanoid," "AI data center," "Physical AI," "robot actuators," and "NVIDIA collaboration" are now appearing.
Min-kyung Kim, a researcher at Hana Securities, said, "LG Electronics plans to establish a mass-production system for humanoid robot actuators within this year and accelerate its CLOiD business," adding, "Expectations are also growing for increased new orders in the data center cooling business and broader expansion in AI-related operations."
AI data center cooling is also emerging as a new growth engine. As AI servers multiply rapidly, demand for cooling equipment to control heat is rising as well, and LG Electronics is being credited with quickly expanding its presence in this market.
Lee Joo-hyung, a researcher at Eugene Investment & Securities Co., Ltd., explained, "The key is expanding Chiller orders for AI data centers and positioning the company as a provider of integrated air-cooling and water-cooling solutions," adding, "Its Physical AI business, centered on robot components and home robots, is also accelerating."
The vehicle components business is also becoming profitable, strengthening the company's earnings base. Profitability improvements centered on In-Vehicle Infotainment (IVI) are continuing, and the existing home appliance business is also shifting toward subscriptions and online sales, serving as a stable source of cash generation.
Park Jun-seo, a researcher at Mirae Asset Securities, said, "The improved profitability of the Vehicle component Solutions division and the pace of the robot business are exceeding market expectations," adding, "A re-rating of LG Electronics' multiple is possible."
Market sentiment has also changed. In the past, when Samsung Electronics and SK hynix rose, LG Electronics was often treated as a neglected stock. Recently, however, it has increasingly moved in step with the expansion of the AI industry. In particular, as NVIDIA-led AI investment cycles spread beyond semiconductors to power, cooling, robots, and mobility, LG Electronics is emerging as a key beneficiary.
An investment industry official said, "In the past, there was a strong perception that LG Electronics was a good company, but its stock would not go up," adding, "It is now being re-evaluated not as a leading home appliance stock, but as a major beneficiary of the expansion of AI infrastructure."
dschoi@fnnews.com Choi Du-seon Reporter