LG Innotek is experiencing a surge of over 15% in its stock price, driven by expectations of long-term growth and improved performance due to the expansion of artificial intelligence (AI) infrastructure.
As of 2:10 PM on June 15, the company’s shares were trading at 1,193,000 won, an increase of 157,000 won (15.15%) from the previous trading day, according to the Korea Exchange.
Market analysts are focusing on the potential benefits and performance improvements stemming from the growth of the AI smartphone and AI server markets.
Kim Dong-won, a researcher at KB Securities, stated, "From 2026 to 2028, we expect long-term performance improvements due to the expansion of the AI Siri ecosystem linked to increased iPhone shipments, as well as growth in the AI semiconductor substrate and server FC-BGA business." He maintained a target price of 2 million won and a 'buy' rating.
He added, "The increase in shipments of high-end iPhone models is expected to lead to higher market share and average selling prices (ASP) for optical solutions. Additionally, we are pursuing an expansion of FC-BGA for servers based on long-term supply contracts with major U.S. clients, which is expected to become a new growth axis."
Kim also predicted that LG Innotek's operating profit for the second quarter would see an 18-fold increase year-on-year, reaching 202.8 billion won, significantly exceeding market expectations. He attributed this anticipated performance surprise to high utilization rates and price increases in the package solution sector, along with expanded shipments of iPhone optical solutions.
Furthermore, he forecasted that the company's operating profit for 2026 would increase by 96% year-on-year to 1.3 trillion won, and that it would reach 1.6 trillion won in 2027, marking two consecutive years of record performance.
* This article has been translated by AI.
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