Why Traditional Conglomerates Are Suddenly NVIDIA's Best Friends in the AI Race

NVIDIA-LG Meeting Signals New AI Infrastructure Play

LG Group Chairman Koo Kwang-mo is set to meet with NVIDIA CEO Jensen Huang on June 5 to discuss collaboration in physical AI areas such as robotics and autonomous driving. The meeting has driven a surge in LG-related stocks to new historical highs.

LG Electronics' stock has risen over 300% this year, transforming from a traditional home appliance company into one of the most closely watched AI-related stocks in the South Korean market.

Following the announcement, LG Electronics' stock hit a 30% daily limit for the second consecutive trading day. The momentum quickly spread across the entire LG group:

• LG CNS rose as much as 29%
• LG Corp. climbed 26%
• LG Innotek increased 23%
• LG Uplus gained 17%

Each company reached record highs on the back of the NVIDIA partnership speculation.

Why the Market Is Rewarding "Old-line" Conglomerates

Shawn Oh, head of NH's Seoul spot equity business, explained the key focus: the meeting signals South Korea's role in NVIDIA's global AI infrastructure expansion strategy.

"The market is revaluing not who will build AI services, but who will establish the physical infrastructure required to run AI."

This represents a meaningful shift in how investors are thinking about AI investment themes. Rather than chasing the obvious AI software winners, capital is rotating toward the industrial backbone — the companies that will build the physical systems AI needs to operate.

Meritz Securities analyst Soowook Hwang provided the macro interpretation: "Instead of being seen as a single corporate meeting, Huang's visit signals the role South Korea will play in NVIDIA's global AI infrastructure expansion strategy."

From Appliance Giant to AI Player: LG's Transformation

LG Electronics began as a home appliance company known as "Goldstar" in the 1950s. The company's evolution into a diversified conglomerate has positioned it to benefit from the current AI infrastructure buildout in ways that pure-play tech investors may have overlooked.

Entering 2026, LG Electronics' accelerated push into robotics and physical AI has made it a focal point of capital enthusiasm. In the chip-driven AI rally in South Korea last year, LG Electronics was almost entirely absent — but this year is different.

The company has integrated into the NVIDIA ecosystem at the practical application level, using NVIDIA's Omniverse platform for digital simulation of smart factories. Additionally, Jensen Huang's daughter, Huang Minshan, met with LG Electronics President Lyu Jae-cheol in April to discuss cooperation details, suggesting this is a family-level relationship with strategic depth.

Key Takeaways

The LG-NVIDIA meeting represents more than a simple business partnership. It signals that the next phase of AI value creation is shifting from software/application layer to physical infrastructure — and traditional conglomerates with manufacturing expertise are suddenly at the center of that narrative.