Major South Korean technology companies experienced significant stock gains Monday as news broke of upcoming meetings between the CEO of Nvidia and Korean business leaders, sparking optimism about potential partnerships in artificial intelligence and robotics sectors.
Samsung Electronics saw additional support from data showing South Korea’s semiconductor exports reached an all-time high in May due to the artificial intelligence surge, contributing to the nation’s largest export increase in more than 40 years.
The Nvidia chief executive is anticipated to travel to South Korea later this week for discussions with the chairman of LG Group and other Korean business leaders, according to a source familiar with the plans.
The graphics chip company also has scheduled a “Korean Partner Night” gathering alongside the COMPUTEX technology conference in Taipei on Monday, featuring the CEO and representatives from memory chip manufacturers Samsung and SK Hynix along with other firms.
Samsung Electronics stock climbed 10.1% to achieve a record closing price, while LG Electronics jumped by its maximum daily increase of 29.9% for the second consecutive trading session, reaching an all-time peak. Internet company Naver gained 16% as its senior leadership is set to meet with the Nvidia CEO on Friday.
“Jensen’s visit to Korea has a major implication. Nvidia needs Korea,” analyst Jeff Kim from KB Securities stated.
The artificial intelligence chip maker announced last year it would deliver more than 260,000 of its most sophisticated AI processors to South Korea’s government and several of the nation’s largest corporations, including Samsung Electronics and Hyundai Motor Group.
In a separate development, Samsung Electronics announced Friday it began distributing samples of its newest high-bandwidth memory chip to clients, gaining an advantage over competitors in rolling out an updated version of the component essential for AI data processing facilities. Samsung’s client base includes major artificial intelligence companies like Nvidia.
Samsung has traded at lower valuations compared to SK Hynix because of its reduced competitiveness in high-bandwidth memory, but this development seems to be driving stock price increases, according to BNK Investment & Securities analyst Lee Min-hee.
