NAVER shares jump 6% early on news of ‘Global AI Factory’ contract [Stocks NOW]

[Financial News] NAVER shares are trading higher early in the session after the company signed a computing infrastructure contract to build an artificial intelligence (AI) factory. The move appears to reflect the easing of investor concerns about its neocloud business.
As of 9:44 a.m. on the 28th, NAVER was trading at 185,800 won on the Korea Exchange’s main board, up 10,150 won (6.66%) from the previous day.
The previous day, NAVER said it had met a prerequisite for NVIDIA Corporation’s strategic equity investment by signing an agreement to secure computing infrastructure worth $9 billion (about 11.9241 trillion won) from Brookfield.
Accordingly, the allotment to NVIDIA Corporation in NAVER’s third-party paid-in capital increase is also expected to be completed soon. Once the process is complete, NVIDIA Corporation will become NAVER’s third-largest shareholder.
An Jae-min, an analyst at NH Investment & Securities, said in a report that day, “The major customer the market is watching may also be disclosed at some point,” adding, “With NAVER’s share price having been pushed down by the recent stock market decline and sector weakness, its valuation has fallen to 13.1 times its projected earnings for next year (PER) and 0.9 times its book value (PBR). We therefore expect its share price to rebound as uncertainty is resolved.”
[email protected] Joo Won-gyu Reporter