[Click e-Stock] "LG Electronics, Anticipating AI and Quantum Computing Alliance with MS"

On the 12th, KB Securities evaluated LG Electronics, stating that "collaboration with Microsoft (MS) and others in the fields of artificial intelligence (AI) and quantum computing is anticipated."

Dongwon Kim, a researcher at KB Securities, said, "It has been reported that Satya Nadella, CEO of MS, will visit Korea on the 26th for the first time in 28 months to discuss cooperation plans in AI and quantum computing with Jo Joo-wan, CEO of LG Electronics."

During this CEO meeting, it is expected that discussions will include LG Electronics supplying cooling facilities for AI data centers, such as chillers, liquid cooling, and immersion cooling?LG’s thermal management solutions?to the AI data center that MS plans to build, as well as partnerships between the two companies in the quantum computing field following MS’s recent unveiling of its self-developed quantum computing chip, "Mayonara 1."

LG Electronics has secured various solutions for AI data center thermal management within the HVAC division under its ES (Eco Solution) business unit. Researcher Kim analyzed, "LG Electronics is transforming its business structure from the traditional air-cooled method, which circulates air, to liquid cooling methods such as water cooling that consider energy efficiency, and immersion cooling, which is emerging as the next-generation standard for AI data center thermal management solutions."

In the quantum computing field as well, LG Electronics holds a leading position. Researcher Kim stated, "LG Electronics, regarded as the most advanced in quantum computing development in Korea, joined the IBM Quantum Network in January 2022 and is promoting the development of quantum computer technology based on superconducting qubits."

Researcher Kim added, "LG Electronics’ stock price is currently at a price-to-book ratio (PBR) of 0.7, the historical low over the past 10 years, due to concerns over Trump-era tariffs. This year, LG Electronics’ home appliance operating profit is estimated to increase by 10% year-on-year to 2.3 trillion won, achieving a record high performance, driven by strong sales of premium products and a confirmed peak in logistics cost declines."