Leading Investment Securities has maintained a 'Buy' rating on NAVER while raising its target price to 320,000 KRW. The firm assessed that the AI factory business, jointly pursued with NVIDIA and Brookfield, could become a new growth axis in the global B2B market.

AI Factory Emerges as Key Investment Point

Leading Investment Securities identified the AI factory business, involving NVIDIA and Brookfield, as NAVER's most important investment point. The analysis suggests that NAVER can expand beyond its existing domestic internet platform centered on search, advertising, and commerce to become a global provider of AI computing infrastructure.

NAVER recently announced plans with NVIDIA and Brookfield to expand sovereign AI infrastructure in South Korea. According to the official announcement, the scale of the NVIDIA-based AI factory being built at the Sejong Data Center 'GAK Sejong' will be expanded from the initial 55MW to 200MW. The facility will provide computing infrastructure enabling domestic and international AI companies to develop large-scale models, AI agents, and related services.

Expectations for Partnership Synergies and Business Model Transformation

Once the AI factory becomes fully operational, GPU-based computing resources, cloud capabilities, and data center operational expertise can be bundled and supplied to external companies. The assessment is that business expansion potential has grown significantly, as NAVER's proprietary hyper-large language model and cloud/data center operational technologies combine with NVIDIA's AI semiconductor and software ecosystem and Brookfield's large-scale infrastructure investment capabilities.

The securities industry is paying close attention to the fact that the AI factory business could fundamentally change NAVER's business nature. Previously, domestic platform performance in areas such as search advertising, commerce, and fintech determined corporate value, but going forward, AI computing infrastructure and global B2B revenue could become new valuation factors.

NVIDIA's Strategic Equity Investment Also a Positive Factor

Leading Investment Securities also evaluated NVIDIA's approximately 1.48 trillion KRW strategic equity investment as a positive factor for enhancing NAVER's corporate value. The firm interpreted the transaction not merely as fundraising but as securing NVIDIA as a strategic shareholder to strengthen AI semiconductor supply and technological cooperation. However, it added that the investment scale, specific equity stake, and new share issuance terms need to be finalized through NAVER's official disclosure.

Risk Factors: Large-Scale Capital Deployment and Monetization Timing

For strategic investment expectations to translate into actual results, the AI factory operational schedule, customer acquisition, and profit distribution structure must be concrete. The AI factory is a capital-intensive business requiring significant costs for data center construction, power procurement, and GPU adoption, meaning initial investment burdens and the potential for increased depreciation costs must be considered simultaneously.

On the other hand, once stable corporate clients are secured, computing resource usage fees and cloud revenue can be generated on an ongoing basis long-term. The ability to generate recurring B2B revenue in the global market, compared to the existing search- and advertising-centered business, is cited as a medium- to long-term growth driver.

Other Securities Firms' Assessments and Future Points to Watch

IBK Investment Securities also evaluated the AI factory as an opportunity for NAVER to grow into a global infrastructure company and previously set a target price of 320,000 KRW.

Leading Investment Securities maintained its 'Buy' rating and target price of 320,000 KRW on NAVER, comprehensively reflecting the AI factory's growth potential, NVIDIA's strategic investment, and the possibility of enhancing shareholder value.

Future stock price movements are expected to be influenced by the AI factory construction and operational schedule, external customer acquisition, and disclosures related to NVIDIA's investment. With the existing platform business maintaining stable profits, the key point to watch is whether AI infrastructure investments translate into new revenue.

[Investment decisions are the responsibility of the individual investor, and the content included in this article does not constitute investment advice. This article was written with AI assistance.]