NC rose more than 4% in early trading on the 28th. Buying picked up on news that artificial intelligence (AI) subsidiary NC AI will partner with Hyundai Rotem to develop defense "physical AI."
As of 10:21 a.m., NC was trading at 290,000 won on the Korea Exchange, up 12,500 won (4.50%) from the previous session. It climbed to as high as 297,000 won in early trading, marking a 1-year high.
NC AI said the consortium it formed with Hyundai Rotem was selected as the final contractor for the national research and development project "physical AI-based integrated simulator and modular robot system," commissioned by the Agency for Defense Development (ADD).
The project aims to maximize the efficiency of manned-unmanned combined weapons systems on future battlefields by organically controlling diverse, multiple unmanned robots and building a Digital Twin-based simulator and modular robot hardware that minimize gaps between reality and virtual environments.
NC AI will lead development of the world model, the core technology for implementing the robot's brain and a next-generation robot foundation model (RFM).
The core business is also expected to see improved earnings.
Kim Hye-young, a researcher at Daol Investment & Securities, said, "With consecutive hits from new titles leveraging existing IP, revenue and operating profit are in a growth phase," adding, "In the third quarter, the launch of 'Aion 2 Global' is scheduled, so the upward trend in revenue and profit is expected to continue through year-end."