Nvidia Expected to Post Another Record-High Earnings... But the Real “Beneficiaries” May Lie Elsewhere [Weekend Money]

Spotlight on Partnerships:
LG Group, Doosan Group, and Other NVIDIA Collaborators

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

Amid anticipation for Nvidia’s upcoming quarterly earnings announcement, there is growing attention on Korean companies expected to benefit, such as LG and Doosan, according to recent analysis.

On August 22, the financial investment industry noted that Nvidia is set to release its second quarter earnings for the fiscal year on August 27. According to LS Securities, Nvidia’s second quarter revenue is projected to reach $91.9 billion, with earnings per share (EPS) of $2.08, marking another record-breaking performance for the company.

However, LS Securities also emphasized that, given the current market environment, it is uncertain whether Nvidia’s strong performance will serve as a positive catalyst for its stock price. Hwang Sanhae, an analyst at LS Securities, stated, “Persistent U.S. long-term interest rate pressure, retail sales shocks, and uncertainty in the Middle East all contribute to market instability.” He added, “Whether Nvidia’s earnings are viewed as positive news, or whether the costs and bubble concerns surrounding the artificial intelligence (AI) cycle come to the fore, will depend on improvements in external conditions.”

Hwang also noted, “Although Nvidia has posted strong results for eight consecutive quarters recently, the company’s share price reacted negatively after the earnings report in seven of those quarters.” He identified already heightened expectations and limited further margin growth as the main factors behind this trend.

He further explained that following Nvidia’s earnings announcements, there have often been better stock reactions among Nvidia’s partner companies than for Nvidia itself. “Just as increased capital expenditures (CAPEX) by big tech firms have been a boon for Nvidia and memory sectors, Nvidia’s robust free cash flow (FCF) and earnings could be interpreted as beneficial not necessarily for Nvidia, but for cyclical finance partners and members of the Nvidia ecosystem,” he emphasized.

He went on to stress the importance of watching Nvidia ecosystem participants based in Korea. According to LS Securities, since the beginning of this year, positive reactions around Nvidia’s earnings dates have spread to companies such as Hanmi Semiconductor (equipment), LG Electronics (cooling), Hyundai Mobis (robotics), Hyundai Engineering & Construction, Daewoo Engineering & Construction (construction), LS ELECTRIC (electrical equipment), and Samsung SDS (software).

Hwang highlighted in particular the need to pay attention to the positive stock reactions of LG and Doosan Group companies, whose partnerships have recently received much attention. For LG, he projected that beneficiaries could include LG Electronics’ CDU (cooling), CNS data centers, as well as LG Innotek’s robotics and auto electronics, in addition to group-wide benefits in power, energy, and networking sectors.

He added, “Doosan should also be watched for its nuclear and gas turbine business through Doosan Enerbility, robotics via Doosan Robotics, and semiconductor equipment at Doosan Electronics BG.”

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