The South Korean stock market is experiencing a surge across the AI value chain following the visit of NVIDIA CEO Jensen Huang. The buying momentum has spread beyond semiconductors to include robotics, cloud services, platforms, and power infrastructure, reflecting growing expectations for an 'AI alliance.' This optimism suggests that South Korea could emerge as a key hub in NVIDIA's global AI supply chain.
On June 1, the Korea Exchange reported a significant rise in stocks related to AI, robotics, and cloud services. Doosan Robotics, identified as a major beneficiary of physical AI, saw its shares soar by 29.95%, closing at 138,400 won. LG Electronics also experienced a substantial increase, climbing 29.86% to finish at 380,500 won, driven by optimism surrounding its robotics, smart home, and automotive businesses. Other LG Group companies, including LG (up 13.10%) and LG HelloVision (up 30.00%), also saw strong gains.
Stocks related to AI data centers, cloud services, and software also surged. LG CNS rose by 26.27% to close at 143,700 won, while Samsung SDS increased by 21.07% to finish at 362,000 won. NAVER's shares climbed 16.03% to close at 271,500 won, reflecting expectations for collaboration with Sovereign AI and AI data centers.
Semiconductor and AI infrastructure stocks also performed well. Samsung Electronics' shares rose by 10.09%, closing at 349,000 won. Consequently, the company's market capitalization increased from 1,853 trillion won to 2,040 trillion won, gaining nearly 200 trillion won in a single day.
Market analysts attribute the buying spree to Huang's upcoming visit and the potential for meetings with major South Korean business leaders. Huang is expected to meet with Naver Chairman Lee Hae-jin on June 5, with discussions about possible meetings with LG Group Chairman Koo Kwang-mo, Hyundai Motor Group Chairman Chung Eui-sun, and Doosan Group Chairman Park Jung-won also being mentioned.
Analysts are particularly focused on the shift in NVIDIA's collaboration from a memory-centric approach to the realm of physical AI. As generative AI expands beyond data centers into real-world industries such as robotics, automotive, manufacturing, and logistics, the strategic value of South Korea's manufacturing base is increasing.
KB Securities analyst Kim Dong-won noted, "NVIDIA's return to Korea after seven months indicates a growing reliance on the country. This is significant not only for securing memory but also for ensuring stability in the supply chain for robotics, mobility, and key AI infrastructure components."
During a presentation at the GTC Taipei event, Huang mentioned that the next-generation AI accelerator, the 'Vera Rubin' system, will feature memory from Samsung Electronics, SK Hynix, and Micron. The market is paying close attention to the potential for increased reliance on Samsung and SK Hynix starting from the HBM4 generation.
Memory semiconductors remain a critical bottleneck in the AI investment cycle, as the competition for GPU performance intensifies, leading to a surge in demand for high-bandwidth memory (HBM) and high-capacity DRAM. Han Dong-won, an analyst at Hana Securities, stated, "The leading stocks in the AI era will emerge not from GPUs but from the bottlenecks surrounding them. Ultimately, the most strategically valuable assets will be in memory."
However, the current market trend is not limited to semiconductors. Recent surges in stock prices indicate a rapid expansion of investment themes across the entire AI infrastructure ecosystem.
Meritz Securities analyst Hwang Soo-wook remarked, "The market's reaction is not merely about a robotics theme but reflects expectations about the role South Korea will play in NVIDIA's global AI infrastructure strategy. GPU clusters, AI data centers, power, cooling, cloud, manufacturing, and robotics are all becoming interconnected within a single value chain."
* This article has been translated by AI.
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