Naver is showing strength early in the session on news that it will join Nvidia to jointly build a global artificial intelligence (AI) factory. In the pre-market, it jumped as much as 20%, and it is posting double-digit gains in regular trading as well.
On the 27th, according to NEXTRADE (NXT), Naver rose as high as 249,000 won in the pre-market, up 20% from the previous trading day. It has since continued gains of around 10% in regular trading as of 9:20 a.m.
Naver said it signed a strategic partnership with Nvidia on the day and will push a joint project to build a global AI factory. The strategy is to respond to rising global demand for AI infrastructure and seize business opportunities in the AI computing market.
In the AI factory business, Naver will handle securing sites for data centers and their construction and operation, while Nvidia will supply graphics processing units (GPUs). The first hub will be the hyperscale data center "Gak Sejong," with plans to build AI infrastructure of 55 megawatts (MW) by the first half of 2027, 100 MW by the end of 2027, and 200 MW by 2028. The business area will later expand beyond the Asia-Pacific to Europe and the Middle East.
To pursue the project, Naver will conduct a third-party allotment paid-in capital increase for Nvidia worth about $1.0 billion (1.4809 trillion won). The issue price for new shares is 204,500 won per share, and it will issue 7,241,564 common shares.
For the $9.0 billion in computing infrastructure needed to build the AI factory, global alternative asset manager Brookfield has proposed raising the funds through project financing (PF). Naver is currently in talks with Brookfield to sign a formal contract.
Along with this, Naver also said it will cancel 4,901,094 treasury shares worth 1.017 trillion won on the day. The market views investor sentiment as improved as expectations grew for AI business expansion through strategic cooperation with Nvidia and the large-scale retirement of treasury shares was announced at the same time.