Jensen Huang is about to meet with the chairman of LG Group; LG Electronics has hit its daily price limit for several consecutive sessions, soaring 300% this year.

Jensen Huang is about to meet with the chairman of LG Group; LG Electronics has hit its daily price limit for several consecutive sessions, soaring 300% this year.

```

The news of Nvidia and LG Group deepening their cooperation in physical AI is causing a strong reaction in the South Korean capital market.

According to Bloomberg on Monday, LG Group chairman Koo Kwang-mo will meet with Nvidia CEO Jensen Huang on June 5, with their talks focusing on expanding cooperation in the field of physical AI. Boosted by this news, LG Electronics' stock has hit the 30% daily limit for the second consecutive trading day, and its cumulative increase this year has exceeded 300%.

This meeting is regarded by the market as a significant signal that Nvidia is including South Korea in its global AI infrastructure expansion. Multiple stocks under LG Group surged simultaneously: LG CNS rose up to 29% in one day, LG Corp. gained 26%, LG Innotek increased 23%, LG Uplus climbed 17%, and several stocks set all-time highs.

Chip stocks rally saturates, capital seeks new AI targets

The strong performance of LG Electronics reflects a revaluation of AI investment logic in the market. With chip stock gains already substantial, investors are actively searching for alternative avenues to participate in the AI boom, and the physical AI sectors such as robotics and autonomous driving are becoming new gathering grounds for funds.

LG Electronics was largely absent from Korea's chip-led AI rally last year, but its stock price has more than quadrupled since the beginning of this year. This transformation is highly aligned with Jensen Huang's strategic direction of vigorously advancing physical AI business.

Shawn Oh, head of Korea cash equity at NH Investment & Securities, stated that the meeting between Jensen Huang and Koo Kwang-mo will focus on expanding cooperation in the field of physical AI. "The scope may extend to multiple LG subsidiaries," including LG Innotek and LG Uplus.

LG and Nvidia's cooperation has made substantial progress

The cooperation between LG Group and Nvidia is not groundless; the two sides have already established substantial business ties. According to reports, Jensen Huang's daughter, Madison Huang, met with LG Electronics president Lyu Jae-cheol in April this year to discuss cooperation details. LG Electronics currently uses Nvidia's Omniverse platform for digital simulation in smart factories.

LG Group's business layout has long surpassed its origin in the home appliances sector of the 1950s and is now actively expanding its partnership with Nvidia, striving to develop robot products for various application scenarios.

Jensen Huang is currently in Asia this week, attending the Computex technology exhibition held in Taipei.

The market’s interpretation of this meeting goes beyond simple corporate cooperation. Meritz Securities analyst Soowook Hwang wrote in a research report: "Jensen Huang's trip is less an enterprise meeting and more a signal — indicating the role South Korea will play in Nvidia’s global AI infrastructure expansion strategy."

He further stated: "The market's repricing is no longer about who will build AI services, but who will construct the physical infrastructure necessary for running AI." This judgment may be the core logic behind the collective surge of LG Group stocks in this round.

Risk warning and disclaimerThe market involves risk, investment needs to be cautious. This article does not constitute personal investment advice, nor does it take into account the specific investment goals, financial situation, or needs of individual users. Users should consider whether any opinion, viewpoint, or conclusion in this article is suitable for their specific circumstances. Investments made accordingly are at your own risk. ```