[Click e-Stock] Will LG Electronics Become a "Robot Partner" with NVIDIA?... Operating Profit Expected to Grow 61% This Year

Robotics Business Emerging as a Physical AI Growth Engine
Anticipated Collaboration with NVIDIA and Vertical Integration

On March 24, Daishin Securities maintained its "Buy" investment rating and target price of 160,000 won for LG Electronics, stating, "We expect strengthened competitiveness in its physical AI-based robotics business and strong performance."

On this day, Kangho Park, a researcher at Daishin Securities, estimated LG Electronics' consolidated operating profit for the first quarter of this year at 1.612 trillion won. This marks a 28% increase from the same period last year and is approximately 17% above market expectations. He explained, "Although concerns about home appliance demand and logistics costs have led to a stock price adjustment due to Middle East issues, the actual impact is limited."

The core investment point highlighted was the physical AI-based robotics business. LG Electronics recently announced at its general shareholders' meeting that the robotics business will be a future growth engine, and strengthened collaboration with NVIDIA is also expected. In particular, at GTC 2026, NVIDIA CEO Jensen Huang named LG Electronics as a partner in the humanoid robot sector, suggesting intelligent agent collaboration across the company’s home appliance, vehicle component, and HVAC businesses.

Researcher Park stated, "LG Electronics has internalized actuator manufacturing based on its proprietary motor technology and has established vertical integration in robot-related areas such as AI, batteries, and displays." He further projected, "Leveraging know-how accumulated in early-stage household robots, the company can diversify its portfolio into commercial and industrial robots."

In terms of performance, profitability improvements are expected to stand out in the home appliance (HS) and TV (MS) businesses. The TV business, which recorded an operating loss last year, is expected to turn profitable in the first quarter of this year. An expanded LCD TV lineup in response to aggressive pricing from Chinese competitors and increased OLED TV sales driven by special demand during sports events are anticipated to have a positive impact. The vehicle component solutions (VS) business is also expected to continue profit growth through a revenue strategy focused on profitability.

Expectations for a valuation re-rating were also emphasized. Park analyzed, "Given the strong first-quarter performance and enhanced competitiveness in physical AI, the current stock price is undervalued," adding, "Annual operating profit for this year is projected to reach 3.991 trillion won, up 61% from the previous year."

This content was produced with the assistance of AI translation services.