NAVER Rebounds from 190,000 Won Slump to "Targeting 450,000 Won"... Revalued Through Partnership with Nvidia [Stock of the Week]

Joint Next-Generation AI Infrastructure Project With Nvidia

Building Custom AI for Search, Commerce, and Content

"Trillions Needed... Capital-Raising Plan Must Be Disclosed"

Jensen Huang, CEO of Nvidia, is taking a commemorative photo after a samgyeopsal dinner meeting with Chey Tae-won, Chairman of SK, Koo Kwang-mo, Chairman of LG, and Lee Hae-jin, Chairman of Naver, at a Korean barbecue restaurant in Seogyo-dong, Mapo-gu, Seoul on June 5, 2026. Photo by Dongju Yoon

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After a long period stuck in a trading range, drawing frustration from individual investors, NAVER is finally back in the spotlight. Expectations are rising that, through business collaboration with Nvidia on artificial intelligence (AI), NAVER's Korean-style AI factory could successfully enter the global market.

Stock Price Surges Following Meeting With Jensen Huang, CEO of Nvidia

According to the Korea Exchange on June 17, NAVER's share price, which was trading in the 240,000 won range at the beginning of the year, surged to 308,500 won during trading on June 9, setting a new 52-week high. Although the price has since fallen back to the 240,000 won range, interest in NAVER remains high in the market.

The key driver behind NAVER's stock rise was the visit of Jensen Huang, CEO of Nvidia, to Korea, where he discussed active business cooperation with NAVER Board Chairman Lee Haejin. On June 8, the two leaders met at NAVER's headquarters in Seongnam, Gyeonggi Province, and agreed to jointly pursue a global AI factory project. They announced plans to launch a 55MW (megawatt) infrastructure in 2027 and to gradually expand their AI infrastructure business.

An AI factory refers to next-generation AI infrastructure designed for large-scale model training and inference, and for applying these capabilities to real-world services and industries. Unlike conventional data centers, these next-generation computing facilities are optimized for AI training and inference. NAVER plans to act as a global core partner, sharing both business outcomes and risks with Nvidia, and aims to build an AI infrastructure ecosystem not only in the Asia-Pacific region but also in the Middle East and Europe.

This news triggered a strong response in NAVER's share price. This is a sharp turnaround from May, when the stock had dropped to the low 190,000 won range due to concerns over the domestic onslaught of 'China Commerce (C-commerce)' and fears about a widening AI competitiveness gap with global big tech firms.

The securities industry quickly raised their target prices for NAVER. DS Investment & Securities raised its target price from 300,000 won to 450,000 won, while Shin Young Securities increased its target from 320,000 won to 400,000 won. KB Securities also revised its target price upward, from 280,000 won to 330,000 won. Ji-Eun Lee, a researcher at KB Securities, commented, "NAVER's strength lies not simply in its data center operation capabilities but in its direct experience managing large-scale B2C services such as search, commerce, and maps, and in possessing the relevant data. These capabilities offer a differentiated competitive edge in the design of next-generation AI infrastructure."

Korean-Style AI Model: Differentiation From Big Tech

The importance of sovereign AI, where NAVER is seen to have a competitive edge, is growing after the U.S. government completely blocked foreign access to Anthropic's top AI models, 'Mythos 5' and 'Fable 5'. Sovereign AI refers to the development of independent AI capabilities by a country or company using domestic infrastructure, data, talent, and networks, rather than relying on external (especially U.S. or Chinese big tech) entities.

Until now, the U.S. has exercised indirect control over the AI industry through semiconductor export restrictions, but this is the first time it has restricted access to the most advanced AI models themselves. This move is seen as evidence that the U.S. regards AI as a strategic asset to be regulated by the state, similar to advanced military technology or semiconductors.

This has strengthened arguments that the development of sovereign AI by country is now essential. In the securities sector, NAVER is widely considered the leading developer of Korean-style sovereign AI.

Jungyeon Seo, a researcher at Shin Young Securities, stated, "NAVER has already identified 'sovereign AI' as a core growth driver in the future AI market. Although global AI computing demand is focused on the U.S., each country's government and corporations are expanding demand for AI models optimized for their own language and regulatory environment."

Seo added, "NAVER is the only domestic company with the ability to build customized AI models for clients, based on its experience operating diverse services such as search, commerce, and content. Moreover, the ability to develop and operate AI models tailored to each country's language, culture, and regulatory characteristics will give NAVER a differentiated competitive edge over global big tech firms."

Overcoming Funding Concerns and Other Challenges

Securing the massive funding required to build AI factories and the resulting financial pressures are key challenges for NAVER to overcome. Constructing data centers and related infrastructure requires tens of trillions of won, and if NAVER relies on borrowing, there are concerns about potential funding shortages.

Donghwan Oh, a researcher at Samsung Securities, pointed out, "NAVER needs to disclose concrete capital-raising plans for building AI factories." Constructing a 1GW-class AI factory requires an investment of 50–60 billion dollars (75 trillion–90 trillion won), which greatly exceeds NAVER's available cash (8 trillion won). As such, further disclosures on fundraising plans, such as attracting external investment or issuing new shares, are needed.

There are also concerns about increased upfront costs. Oh noted, "Global neo-cloud companies, despite strong revenue growth, demonstrate weak profitability due to shorter GPU replacement cycles and significant initial depreciation. NAVER's AI factory also faces the risk of short-term profitability declines from increased depreciation expenses until utilization rates rise."

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