LG Electronics saw its shares hit the daily limit increase as investor optimism grew around its new robotics and artificial intelligence (AI) ventures. The company’s shift away from a traditional home appliance focus has renewed expectations for growth, significantly improving investor sentiment.
On May 21, the Korea Exchange reported that LG Electronics' stock closed at 235,000 won, up 54,000 won (29.83%) from the previous trading day.
The surge in buying interest is attributed to expectations surrounding the expansion of its physical AI-related businesses, including humanoid robots, industrial automation solutions, and AI-based smart home technologies. The company has been re-evaluated as a beneficiary of the global expansion in AI infrastructure investment, leading to a rapid influx of capital.
Additionally, the recent perception of being undervalued has contributed to a rebound in buying activity. The influx of foreign and institutional investors has further amplified the upward momentum.
Market analysts suggest that this sharp rise in LG Electronics' stock is not merely a short-term event but reflects broader expectations for structural changes in the company amid an AI transition. There are predictions that the expansion of its robotics and B2B (business-to-business) operations could lead to a long-term re-evaluation of its valuation.
Earlier, Kim Min-kyung, a researcher at Hana Securities, noted, "Despite a challenging operating environment, the company has secured profit resilience through comprehensive cost structure improvements and efficient marketing spending. At the same time, it is aggressively pursuing new business opportunities in robotics, solidifying its future growth drivers."
He added, "The rapid increase in new orders for data center cooling solutions, along with discussions for collaboration with NVIDIA on physical AI, AI data centers, and mobility, are creating strong momentum for the company's AI-related business initiatives."
* This article has been translated by AI.
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