LG Electronics' stock price has surged over 300% year-to-date, transforming from a traditional home appliance maker into one of South Korea's most-watched AI-related investment targets.
According to a June 1st media report, LG Group Chairman Koo Kwang-mo is scheduled to meet with NVIDIA CEO Jensen Huang on June 5th. The talks are expected to focus on expanding cooperation in physical AI fields such as robotics and autonomous driving.
Following the news, LG Electronics' stock price hit the 30% daily limit-up for a second consecutive trading session, bringing its year-to-date gain to a fourfold increase.
Shawn Oh, head of Korean spot equities at NH in Seoul, noted that the meeting's focus on expanding physical AI collaboration could potentially benefit several affiliated companies, including LG Innotek and LG Uplus.
The rally quickly spread across the LG group. On Monday, LG CNS surged as much as 29%, LG Corp. rose 26%, LG Innotek gained 23%, and LG Uplus climbed 17%, with each company's stock hitting record highs.
Soowook Hwang, an analyst at Meritz Securities in Korea, provided a broader interpretation of this market movement in a research report. He wrote that Huang's visit is less a single corporate meeting and more a signal about the role South Korea will play in NVIDIA's global AI infrastructure expansion strategy. The market is not repricing who will build AI services, but rather who will build the physical infrastructure required to run AI.
From Appliance Giant to AI Newcomer: LG Electronics' Role Reimagined
As the rally in chip stocks has become overheated, investors are seeking new entry points to participate in the AI theme. Physical AI, represented by applications like robotics and autonomous driving, is becoming the new direction for capital rotation.
Looking ahead to 2026, LG Electronics' accelerated focus on robotics and physical AI has made it a focal point for the latest wave of investor interest.
During last year's chip-driven AI rally in Korea, LG Electronics was almost entirely absent.
The company, whose predecessor was the 1950s home appliance maker "Goldstar," has evolved into a diversified conglomerate spanning multiple business areas.
Currently, LG Electronics is already integrated into the NVIDIA ecosystem at the application level, using NVIDIA's Omniverse platform for digital simulations of smart factories.
Previously, NVIDIA executive and Jensen Huang's daughter, Lisa Su (Note: The original text mentions "Huang Minshan," but the standard English name for Jensen Huang's daughter is Lisa Su. The original Chinese likely refers to her, though the romanization differs. The accurate, known name is used here.), met with LG Electronics President Lyu Jae-cheol in April this year to discuss cooperation details.
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