Can Nvidia CEO Jensen Huang rescue Naver shareholders who have been stuck since buying at 465,000 won five years ago? On Wednesday evening, Huang, who holds sway over the global artificial intelligence (AI) chip market, will set foot on Korean soil after wrapping up his Taiwan schedule. The domestic stock market, which reopens Wednesday after a Tuesday holiday for local elections, is also expected to dance along with Huang’s visit.
Nvidia CEO Jensen Huang speaks with reporters from South Korea and other global media at the “Korea Partner Night” dinner with South Korean companies held at a restaurant in Taipei, Taiwan, on Nov. 1. Yonhap
In the KOSPI market on Tuesday, shares of companies drawing attention through Nvidia partnership announcements and Huang’s upcoming visit showed high volatility. Naver (035420.KS) reversed an intraday plunge of more than 7% to close 3.31% higher at 280,500 won, after announcing at the Nvidia Cloud Partner Summit in Taiwan that Naver Cloud would partner with Nvidia on a global AI factory construction project. Huang is also scheduled to visit Naver’s headquarters in Jeongja-dong, Seongnam, Gyeonggi Province, during his Korea trip.
Investors are growing hopeful that this partnership could propel Naver toward its all-time high of 465,000 won set in July 2021. Analysts say Naver, which can handle everything from AI chips to service operations, has been chosen as Nvidia’s ally, laying the groundwork for a medium- to long-term re-rating of its corporate value.
NCsoft (036570.KS), whose share price has recently turned upward after a prolonged slump, is also expected to benefit. The company’s shares surged 14.43% Tuesday on news of a sudden meeting between CEO Kim Taek-jin and Huang. A sorting process is expected to unfold to identify which companies are real beneficiaries of Nvidia’s halo. SK Telecom (017670.KS), cited as a major physical AI partner during Huang’s keynote speech at Computex the previous day, jumped 11.59% Tuesday. LG Electronics (066570.KS), which had hit the daily upper limit for two consecutive sessions before being pushed down by intense profit-taking, also closed up 3.15% as buying returned in the afternoon.
In contrast, theme stocks that had risen on mere event expectations without concrete fundamental backing suffered heavy corrections. Doosan (000150.KS), which had soared near the daily upper limit on hopes of a surprise visit from Huang, plunged 12.94% as disappointed selling poured in amid views that the visit would amount to nothing more than a ceremonial first pitch at a professional baseball game.
Whether the KOSPI, which has broken through the 8,800 level, can break the 9,000 mark with Huang’s visit is also of interest. Meritz Securities presented a year-end KOSPI target of 11,500, citing strong earnings growth driven by semiconductors, and forecast a long-term upward trend. However, fatigue from the short-term surge, caution ahead of this month’s U.S. Federal Open Market Committee (FOMC) meeting, and policy changes following the local election results are cited as variables that will stir intraday volatility for the time being.
