Hyundai Motor Group Chair Chung Eui-sun met with Nvidia CEO Jensen Huang, and within two trading days Hyundai AutoEver shares jumped more than 40%. Investors appear to have piled in on expectations of collaboration in the Autonomous Driving business.
Hyundai AutoEver stock closed at 225,000 won on the KOSPI market on the 3rd. The share price rose 10.57% (21,500 won) from the previous trading day. It climbed to as high as 238,000 won intraday, setting a new 1-year high.
A meeting between Chair Chung and CEO Huang at Kkanbu Chicken on the 30th of last month, followed by an agreement between the two companies to cooperate on "physical artificial intelligence (AI) advancement," acted as a catalyst. As Hyundai AutoEver is a key affiliate in charge of software development within the group, it is seen as likely to benefit.
Through this agreement, Hyundai Motor Group plans to introduce 50,000 of Nvidia's next-generation AI chips and push forward development, verification, and demonstration of an integrated AI model. The technology is expected to be applied to the group's future core businesses, including Autonomous Driving cars, smart factories, and Robotics.
Lee Jae-il, an analyst at EUGENE INVESTMENT & SECURITIES, said, "Expansion of AI and Robotics business infrastructure at the Hyundai Motor Group level will act as a mid- to long-term boon for Hyundai AutoEver."