In early trading on the 2nd, LG Innotek is plunging 20%. After a 460% surge this year, it is seen as profit-taking hitting the market.
As of 9:33 a.m. that day on the Korea Exchange, LG Innotek is transaction at 1,256,000 won, down 274,000 won (17.91%) from the previous session.
This year, LG Innotek's share price jumped 460% as the appeal of semiconductor substrates rose on the back of expanded investment in artificial intelligence (AI) infrastructure. However, as profit-taking emerged after the sharp rise, the stock is tumbling that day.
Brokerages still see strong growth potential for LG Innotek. Kim Dong-Won, head of research at KB Securities, said, "The substrate industry, facing an acute supply shortage, is showing a pattern similar to the memory semiconductor industry, which is experiencing supply bottlenecks due to expanded AI investment," and noted, "Supply of AI substrates next year is expected to tighten further compared with this year, so for the time being the pace of upward revisions to earnings forecasts will outstrip the pace of share-price gains." Accordingly, a target price of 1.6 million won was set for LG Innotek.