LG Electronics Leaps Forward with 5% Surge on Nvidia AI Server Rack Deal
LG Electronics shares experienced a significant 5% surge following reports that the South Korean tech giant is poised to construct AI server racks for Nvidia. This move signifies a deepening strategic alliance between the two companies and marks LG’s ambitious expansion into the thriving AI data center infrastructure market.
As reported by Seoul Economic Daily, LG Electronics — globally recognized as the largest home appliance manufacturer — is utilizing its sophisticated cooling and mechanical engineering technologies to penetrate the core AI data center construction sector. The company’s proficiency in HVAC and direct-to-chip cooling systems, refined over decades of appliance manufacturing, is being enhanced and adapted to the high-density GPU server racks required by contemporary AI workloads.
The initiative builds on the significant expanded partnership announced on June 8, 2026, in Seoul. This partnership between Nvidia and LG Group saw Nvidia CEO Jensen Huang outlining plans to collaboratively develop humanoid robots, next-generation AI data centers, and autonomous AI factories. Furthermore, LG established a new Robotics Business Center in Seoul on July 1, 2026, amalgamating development, sales, and manufacturing under one roof.
Industry analysts suggest that LG’s foray into AI server rack manufacturing could potentially challenge Taiwan’s dominance in the sector, thereby strengthening bargaining power with Big Tech clients. A large-scale AI data factory in Seoul, utilizing Nvidia’s Cosmos models to generate synthetic training data, is slated for completion later this year.
Source: Seoul Economic Daily – LG Enters AI Server Rack Market With Direct-to-Chip Cooling