LG Group stocks, long regarded among investors as a byword for chronic undervaluation and neglect, have surged recently. LG Electronics, effectively the group’s eldest sibling, jumped more than 70% this month, and parts affiliate LG Innotek also rose 40%. The inflow of investment funds is seen as driven by the spotlight on the group’s shift to improve its business structure around AI infrastructure and Robotics.
According to the Korea Exchange (KRX) on the 25th, LG Electronics’ share price rose 74.5% this month. Based on the closing price on the 30th of last month, it was 135,800 won, but it traced a steep upward curve this month and jumped to 237,000 won on the 22nd.
As the company’s shift from an appliance-centered structure to AI infrastructure and Robotics has come to the fore, LG Electronics ranked among the top five KOSPI stocks by return in May this year.
LG Innotek also joined the rally. LG Innotek is hitting record highs as it is grouped as a beneficiary of the boom in semiconductor substrates (FC-BGA) driven by the recent AI supercycle.
As major affiliates’ share prices soared as if they were theme stocks, the market capitalization of LG Group’s listed companies swelled by more than 6.65 trillion won in a month. The combined market capitalization of 12 listed LG Group affiliates was about 216.25 trillion won as of the 24th of last month. With the share prices of major affiliates such as LG Electronics and LG Innotek skyrocketing this month, it increased to about 222.9 trillion won as of the 22nd.
LG Electronics’ first-quarter earnings surprise is seen as having sparked the rally in group stocks. On a consolidation basis in the first quarter of this year, LG Electronics posted revenue of 23.7272 trillion won and operating profit of 1.6737 trillion won, marking its best first-quarter performance ever. Revenue was an all-time high, and operating profit jumped 32.9% from a year earlier, far beating market estimates (consensus).
The key driver leading LG Electronics’ subsequent share-price rally is momentum from new businesses related to Robotics. With Robotics and physical AI cooperation with global AI bellwether Nvidia becoming official, there is speculation that LG Electronics will benefit from expanded orders for cooling equipment (chillers) for North American data centers.
After the strike at Samsung Electronics, which is leading the domestic stock market, robot-related stocks gained attention on expectations for labor substitution demand, which is also seen to have added fuel to the rally.
LG Electronics’ home robot LG CLOi picks laundry from a basket and loads it into a washing machine at the CES 2026 exhibition hall./Courtesy of LG Electronics
Brokerages expect LG Electronics’ earnings improvement to continue, citing rising demand for cooling solutions and the full-scale rollout of new robot-related businesses as the AI data industry expands. They note that LG Electronics has transformed its profile beyond a simple appliance maker into an AI and robotics company.
Kim Min-kyung, an analyst at Hana Securities, said, “LG Electronics is securing earnings resilience through companywide cost structure improvements and more efficient marketing expense, while pushing ahead with new businesses related to Robotics,” and added, “New orders in the data center cooling business are increasing, and there is also momentum from AI-related businesses, including discussions on cooperation with Nvidia in physical AI, AI data centers, and mobility.”
LG Innotek is likewise benefiting from a substrate shortage, prompting major securities firms such as KB Securities and NH Investment & Securities to simultaneously raise their target price to 1.2 million won.
Hwang Ji-hyun, an analyst at NH Securities, said, “LG Innotek is diversifying its business risks as it expands from its existing IT set-centered portfolio into automotive electronics and semiconductors,” and added, “Business expansion through cooperation with external partners is also getting underway in earnest.”
However, the share price of LG Energy Solution, LG Group’s No. 1 by market capitalization, remains sluggish. LG Energy Solution’s stock fell 15.8% this month. Although LG Energy Solution drew attention as a beneficiary of rising battery demand for robots, investor sentiment weakened as the slump in the electric vehicle industry dragged on.
The market is watching to see whether LG Group stocks can use the recent rebound as a turning point to successfully reform their fundamentals. LG Group affiliates have long been seen as stingy with shareholder returns and passive in defending their share prices.
A person in the financial investment industry said, “LG Group stocks had long been treated in the stock market as the ‘aching finger,’ but overlapping Robotics expectations sent them soaring like theme stocks despite being heavy large caps,” and added, “If improvements in business fundamentals and steady results are confirmed, the share prices could continue to rise.”
Originally written by: Park ji-youn
Image credit: –Â
Source: ChosunBiz
Published on: 25 May 2026
Link to original article: LG Group pivots to AI and robotics, Korea stocks surge despite EV drag
