Jensen Huang Visits South Korea: Recommends Qualcomm, Bets on Korean Robotics. ‘Nvidia Concept Stocks’ Expand: Which Are Worth Buying?

TradingKey - Recently, NVIDIA (NVDA) CEO Jensen Huang engaged in a series of activities in Seoul, South Korea: attending a barbecue dinner with SK Hynix Chairman Chey Tae-won, LG Chairman Koo Kwang-mo, and Naver Chairman Lee Hae-jin, establishing partnerships with several South Korean firms, and publicly endorsing Qualcomm (QCOM) stock.

This series of actions and remarks has further expanded the list of NVIDIA concept stocks, though Bloomberg criticized his comments as being detached from market dynamics. Are there any stocks among these "NVIDIA concept stocks" truly worth buying?

Jensen Huang Concept Stock List Expands: LG and Doosan Group Added

Jensen Huang stated publicly on Monday that "Nvidia does not excel in the mobile device sector, nor is it necessary," while "Qualcomm does a very good job," and recommended that investors buy its stock; shares rose more than 2% in after-hours trading on Monday.

Huang also urged SK Hynix to "please produce more" memory chips and signed a multi-year technical partnership with the company, under which SK Hynix will co-develop specialized memory for Nvidia's Vera Rubin AI supercomputer, Vera CPU, RTX Spark PC, and Jetson Thor robotics computing platform.

Previously, during the GTC Taipei keynote, Jensen Huang stated that the cost of the sixth-generation HBM4 memory subsystem in the upcoming mass-produced Vera Rubin platform has increased by approximately 435% compared to the previous Blackwell platform, with HBM4 memory being the most expensive component in a single rack. This trip to South Korea was aimed at securing the HBM4 memory supply chain, with SK Hynix being one of the undisputed primary beneficiaries.

Furthermore, Nvidia announced new partnerships in AI infrastructure with companies including internet giant Naver, LG Group, Hyundai Motor, and the industrial conglomerate Doosan, whose business spans machinery and construction. Another focus of this collaboration is Physical AI and robotics: Hyundai Motor will adopt Nvidia’s next-generation Jetson Thor processor for robotics and autonomous driving; Doosan Robotics, South Korea’s largest collaborative robot manufacturer, announced its entire product line's operating system will integrate with Nvidia’s Isaac Sim simulation platform; and LG Electronics will utilize Nvidia’s Physical AI platform to develop various robot product lines.

Analysts noted that this signifies Nvidia's focus is no longer limited to the core chip components of AI infrastructure but has expanded into full-stack AI infrastructure. Given South Korea's leading manufacturing prowess, Jeff Kim, an analyst at KB Securities in Seoul, pointed out that South Korea is becoming a perfect testing ground for Jensen Huang's Physical AI production base.

Buying New “Nvidia Concept Stocks”? Bloomberg Warns of Bubble Risks

The market has already witnessed Jensen Huang's star power. On the eve of Huang's visit to South Korea, the KOSPI index closed above the 8,800-point threshold for the first time on June 2. After Huang expressed interest in investing in the South Korean robotics sector, shares of both Doosan Robotics and Robostar hit 52-week highs. Although South Korean stocks tumbled more than 8% this Monday, tracking losses in U.S. markets, Naver—which has a formal agreement with Nvidia—rose 9.2% against the trend.

However, Bloomberg noted that Huang’s recent direct expressions of bullishness toward certain companies were "reckless and detached from market dynamics." The market is already seeing signs of frenzied retail buying, rising leverage, and investors labeling manufacturers ranging from automakers to PC makers as "AI plays," suggesting that the risk of a market bubble should not be ignored.

As for the South Korean market, since Samsung Electronics and SK Hynix combined account for more than half of the KOSPI's weighting, the fate of the entire market is largely dictated by these two firms. Whether these semiconductor giants can transcend industry cycles remains to be seen, representing one of the biggest risks for Korean equities. Furthermore, Bloomberg noted that the market is currently in an information vacuum; the first-quarter earnings season has concluded, and the next cycle will not begin until late July. In the interim, investors lack the most objective basis for evaluation—financial data. Bloomberg maintains that Huang's outsized influence must come with a commensurate level of responsibility.

Regarding specific stocks, while the scale of the current semiconductor up-cycle may far exceed previous ones—potentially leading to significant long-term gains for giants like Samsung and SK Hynix—Bloomberg argues that it is inappropriate for Huang to offer direct stock recommendations without considering valuations and market sentiment.

Furthermore, while gaming stocks such as Krafton and NCSoft also surged ahead of Huang’s visit, these moves were primarily driven by retail sentiment, making it difficult to translate the "Nvidia catalyst" into actual bottom-line profits in the short term.

Attention should be paid to companies with established partnerships and promising long-term prospects that may not see immediate payoffs. LG Electronics’ water-cooling solution for high-power AI factories has received official certification from Nvidia. Doosan Group supplies high-value copper clad laminate (CCL) materials for Nvidia’s Blackwell chips, and its subsidiary, Doosan Robotics, has integrated the Nvidia Isaac Sim platform. While these companies are poised for future benefits, the commercialization cycle for robotics is lengthy. Investors should monitor progress to determine appropriate entry points and avoid buying blindly at peak valuations.