Naver Reappraised as a Global AI Infrastructure Operator

The market's perspective on NAVER (035420) is shifting from a domestic search and advertising platform to a global AI infrastructure operator. With Nvidia's decision to invest directly in NAVER's headquarters rather than through a special purpose company (SPC), analyses suggest that both the feasibility of the Neocloud business and its profit attribution structure have become concrete.

On the 28th, Hana Securities maintained a target price of 400,000 KRW and a 'Buy' rating for NAVER, presenting it as a top pick within the internet industry. The firm judges that even though the Neocloud new business has entered the actual investment phase, its related growth value is not yet sufficiently reflected in the current enterprise value.

Nvidia's Direct Investment... 4.55% Stake, Accompanied by 3.1% Treasury Share Cancellation

On the 27th, NAVER announced via a regulatory filing that it will pursue a 1.4809 trillion KRW third-party allotment capital increase targeting Nvidia. Once the transaction is completed, Nvidia's stake in NAVER is expected to increase to approximately 4.55%.

Along with this, NAVER has decided to cancel approximately 3.1% of its treasury shares, presenting a measure to partially alleviate the burden of equity dilution for existing shareholders caused by the new share issuance.

However, Nvidia's investment must fulfill general procedures as well as separate financing conditions. Excluding Nvidia's investment funds, NAVER is currently pursuing to raise a minimum of 9 billion USD required for its AI factory business, and plans to continue negotiations with Brookfield as the preferred bidder. Nvidia has also specified the confirmation of this financing as a condition for completing the investment.

Core of the Investment Method: Economic Benefits Linked Through Direct Headquarters Stake

What Hana Securities highlighted is the method of investment. The market had initially discussed a structure where NAVER and external investors would establish a separate special purpose company (SPC), which would then own the data centers and GPUs.

However, with Nvidia investing directly in NAVER's headquarters, it is explained that the economic benefits generated from the AI data center business are now more likely to be connected directly to NAVER's enterprise value.

Lee Jun-ho, a researcher at Hana Securities, evaluated that Nvidia's direct investment carries the nature of a business alliance rather than a simple financial investment. Nvidia has built its AI computing ecosystem by making equity investments in Neocloud companies such as CoreWeave and Nebius, while expanding the supply of its latest GPUs. The analysis suggests that NAVER is also highly likely to establish itself as a partner responsible for AI infrastructure expansion in Asia, moving beyond simply being a customer purchasing Nvidia's GPUs.

Forecast of a Fundamental Change in Valuation Standards

Accordingly, the criteria determining NAVER's enterprise value are expected to change moving forward. Previously, the growth rates and profitability of its search advertising, commerce, and content businesses were the primary evaluation factors; however, the order volume and utilization rate of AI data centers, GPU securing capabilities, and long-term customer contracts could be added as new valuation variables.

NAVER Financial-Dunamu Combination Emerges as a Digital Asset Axis

The digital asset business was also cited as a medium- to long-term revaluation factor. The scheduled date for the comprehensive share exchange that NAVER Financial is pursuing to incorporate Dunamu as a wholly-owned subsidiary has been adjusted to December 31. The possibility remains that the schedule and transaction structure could change depending on the Korea Fair Trade Commission's corporate combination review, financial authority reports, and the content of digital asset-related legislation.

Hana Securities predicted that once the relevant procedures are completed, NAVER is likely to emerge as a key operator connecting simple payments, financial platforms, digital asset trading, and asset-linked products. The assessment is that while Neocloud serves as the growth axis for the corporate-targeted AI infrastructure business, the combination of NAVER Financial and Dunamu could become an expansion axis in the financial and digital asset sectors.

Revaluation Variables and Risks

However, whether the actual enterprise value will increase may depend on the final completion of Nvidia's investment, the 9 billion USD scale financing, the securing of initial customers, and data center utilization rates alongside investment recovery periods. The combination of NAVER Financial and Dunamu also requires confirmation from regulatory approvals and the direction of digital asset legislation. Whether it moves beyond new business announcements to connect with contracts, revenue, and profitability will be the core variable determining NAVER's further revaluation.

[This article is an informational piece written based on securities firm analyses and public data, and does not recommend the purchase or sale of any specific stock. Investment decisions and responsibilities lie with the investor. This is an AI-assisted article.]