SEOUL, August 12 (AJP) - Shares of LG Electronics jumped nearly 13 percent on Wednesday, fueled by expectations that an anticipated meeting between LG Group Chairman Koo Kwang-mo and Nvidia CEO Jensen Huang could lead to deeper cooperation in robotics and artificial intelligence infrastructure.
LG Electronics closed at 205,000 won ($148), up 12.82 percent from the previous session, after climbing as high as 212,500 won during trading.
Koo is visiting Nvidia's headquarters in Silicon Valley this week for talks with Huang, according to industry sources, drawing investor attention to potential expansion of ties between the two companies.
The two executives last met in Seoul in June, when they discussed potential cooperation in areas including robotics, AI infrastructure and autonomous driving.
Investor expectations have also been supported by growing interest in so-called physical AI, which extends artificial intelligence into machines and real-world systems such as robots.
Morgan Stanley recently identified LG Electronics as a potential beneficiary of the trend, pointing to its businesses spanning AI-powered homes, robotics, commercial heating, ventilation and air conditioning systems and cooling solutions for AI data centers.
The broader LG Group also has businesses that could feed into physical AI infrastructure, including sensing and optical components from LG Innotek, batteries from LG Energy Solution and smart factory capabilities from LG CNS.
LG Electronics has meanwhile been expanding beyond its traditional consumer appliance business. On Wednesday, the company launched a new diagnostic monitor cleared by the U.S. Food and Drug Administration as part of an expansion of its B2B medical display business.
Wednesday's rally followed a sharp pullback in the stock, which fell 4.37 percent in the previous session. The shares had surged to around 390,000 won in early June amid expectations surrounding Koo and Huang's previous meeting before retreating sharply in subsequent weeks.
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