Shares of LG Electronics and several of its affiliated companies experienced a significant surge during Monday's morning trading session. This rally was driven by investor optimism regarding the potential for an expanded partnership between the South Korean conglomerate and NVIDIA in the fields of physical artificial intelligence and robotics technology.
In early trading, LG Electronics Inc. saw its stock price jump by 28%. Concurrently, shares of LG CNS and the holding company LG Group rose by 25% and 21%, respectively.
Analysts attribute the recent upward movement in the stock prices of LG Group companies to growing market focus on new business ventures such as AI and robotics. This sentiment was echoed in a report by a Kiwoom Securities analyst on Monday.
The heightened expectations follow recent media reports from South Korea indicating that NVIDIA's CEO, Jensen Huang, is scheduled to visit the country later this week. His itinerary is expected to include a meeting with LG Group Chairman Koo Kwang-mo, among other engagements.