"Bought on a pre-market surge, now down 25% — is the Jensen Huang effect already over?" LG retail investors stunned [World of Retail Investors]

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[The Financial News] On his way to work on the 2nd, office worker Bae Seong-mun, 48, a pseudonym, checked the pre-market session and bought one stock. He did so after seeingLG Electronics rise more than 20% in the pre-market session, with the stock climbing into the 460,000 won range, and he felt a sense of urgency to get in before it was too late.
Bae, who had avoided the pre-market session because of its volatility, made the move because he believed the graph for LG Electronics, which had been rising endlessly on his brokerage app thanks to the so-called "Jensen Huang effect," would not reverse at least through this week. After seeing LG Group stocks surge sharply as soon as Jensen Huang, the NVIDIA CEO, mentioned cooperation ahead of his planned visit to Korea this week, Bae became convinced that"It is time to break free from years of undervaluation. Once the market opens, it will go even higher."He was sure.
But at 9 a.m., LG Electronics kept sliding after the market opened. Every time Bae, who had bought LG Electronics in the upper 440,000 won range during the pre-market session, refreshed the screen on his Mobile Trading System (MTS), his heart pounded.At 9:50 a.m., the stock had plunged to 333,000 won, nearly 25% below its intraday high of 438,000 won shortly after the open, and Bae felt his stomach sink.
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On the 2nd, the KOSPI opened strong, rising to 8,933 shortly after the market opened and breaking above the 8,900 mark for the first time ever. But the market began to swing as foreign investors dumped shares for profit-taking. Retail investors stepped in to support the index, yet the KOSPI ended up moving in a mixed pattern amid a falling market, with red turning to blue across the board.
At the center of the decline were LG Group stocks, which had led the previous day's rally, along with the so-called 'Jensen Huang theme stocks.' Large-cap names that had risen the day before on expectations of cooperation with NVIDIA after Huang's remarks turned weak as soon as trading opened, sliding one after another.
Among them, LG Group stocks stood out for their weakness.LG Electronics, LG Innotek, LG CNS, and holding company LG all posted sharp declines.The TIGER LG Group Plus exchange-traded fund (ETF), which holds LG Group-related stocks, also fell to the 16,000 won range intraday.
LG Electronics ended the day with a dramatic rebound late in the session, closing at 392,500 won, up 3.15% from the previous day. 
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The pre-market session runs from 8:00 a.m. to 8:50 a.m. before regular trading begins. Trading volume is thin, so prices can move sharply on the orders of just a few players. In LG Electronics' case, the pre-market price surged well above 20%, but as soon as the regular session opened, investors who had already priced in the optimism rushed to take profits, triggering a sharp post-open drop.
For individual investors expecting the 'Jensen Huang effect,' the day's decline could only feel harsh. Expectations were so high that a website even appeared to track Huang's domestic itinerary and the share prices of related stocks in real time ahead of his visit to Korea. It was a kind of'halo effect'in behavioral economics.The overwhelming fame of Jensen Huang cast a halo over every company he mentioned or met, and that was reflected in stock prices.
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Huang is scheduled to visit Korea on the 4th. Meetings are planned with Chey Tae-won, Chung Eui-sun, Koo Kwang-mo, Kim Taek-jin, and Lee Hae-jin. Attention is now focused on whether the stocks that fell today will rebound when he arrives.
After arriving on the 4th, Huang is expected to meet major business leaders on the 5th and hold a second 'friendly get-together' near Seongsu-dong. He is also scheduled to throw the ceremonial first pitch at a KBO League game between the Doosan Bears and the Kiwoom Heroes, and to attend a meeting with major Korean business figures. On the 8th, he is reportedly coordinating a visit to Naver 1784, Naver's second headquarters in Bundang, Seongnam.
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bng@fnnews.com Kim Hee-sun Reporter