LG Electronics' AI cooling solutions revenue could grow to 5 trillion won within two years

[Financial News] On the 8th, Samsung Securities said revenue related to AI (artificial intelligence) data center cooling solutions at LG Electronics could grow from around 1 trillion won in 2026 to as much as 5 trillion won within the next two years. It maintained its “Buy” rating on LG Electronics and raised its target price from 210,000 won to 250,000 won.
“Growth in the AI data center cooling solutions business is gradually becoming more visible. We are already seeing an increase in orders for chillers and air-conditioning units,” said Lee Jong-wook, a team leader at Samsung Securities. “Most current orders are estimated to be for chillers, but it seems the scope of orders has recently begun to expand to include CDUs as well. With earnings from existing businesses stabilizing, if revenue growth in cooling solutions gets fully underway, it could lead not only to higher earnings but also to a re-rating of the multiple for LG Electronics' business portfolio.”
Samsung Securities estimated LG Electronics' operating profit for this year at 4.2 trillion won, down 6% from its previous estimate, reflecting weak third-quarter results. It forecast 2027 operating profit at 4.6 trillion won, up 8% from its previous estimate, reflecting expanded revenue from data center cooling solutions and stabilized profitability in the MS division.

[email protected] Kang Gu-gwi Reporter