🧅 LG CNS: AI Presence is Growing, but Why Aren't Profits Rising? - 2026.07.20

Whoa, the market has come alive! No, wait—today's story is a bit different. Looking at the news lately, they say LG CNS's AI and cloud businesses have grown tremendously, right? But then why are profits just treading water? This isn't a mystery; it's a structural issue. 🧐

AI Alliance with NICE and Furiosa, Targeting Global Markets

First, some good news. Today, LG CNS entered into a strategic partnership with NICE Information Service for AI Transformation (AX) and global joint projects ^[2]. By combining NICE's credit information and data analysis capabilities with LG CNS's AX technology, they aim to advance financial AI services and expand into overseas markets ^[8]. Specifically, they plan to identify joint business opportunities for international financial institutions and data industry clients, which means this isn't just a domestic competition, but a move to set the stage globally ^[9].

They are also moving on the AI infrastructure front. LG CNS has signed a business agreement with FuriosaAI and is conducting technical verification for applying 'Renegade' to its enterprise agentic platform, while also participating in the development of independent foundation models ^[3]. As the commercialization of domestic NPUs expands, the landscape of cloud services could shift, and LG CNS clearly intends to lead this trend.

Dominating Physical AI, Data Centers, and even Hardware?

They are extending their reach beyond software into hardware as well. The goal is to lead the commercialization of Physical AI by training robots to possess 'industrial intelligence' that understands the language and rules of the field ^[4]. Through RX solutions that integrate everything from robot learning to operations, they plan to accelerate digital transformation at industrial sites ^[4].

Furthermore, in collaboration with PhysicsX, they are developing a next-generation world model that combines engineering simulation and digital twins, and are expanding the integrated operation of heterogeneous robots through the robot learning platform 'PhysicalWorks Forge' ^[5]. iM Securities evaluated this as a process where the Physical AI value chain is being completed through the vertical integration of LG Group's subsidiaries ^[5].

Infrastructure investment also continues. By the end of this year, they are expanding investments in the AI infrastructure sector, such as establishing a modular data center in Busan, which is expected to increase hiring for related positions ^[6]. Let's not forget that their mathematical optimization consulting service, which has continued for nine years with the participation of master's and doctoral-level experts, is contributing to strengthening corporate competitiveness ^[10].

But, Why Aren't Profits Increasing?

Now for the core issue. Analysis shows that while the scale of the AI and cloud sectors is growing, they are facing difficulties in improving profitability ^[1]. Low-profit business structures are hindering profitability improvements, drawing attention to the gap between external growth and profit generation ^[1]. As MyDaily's analysis suggests, we need to look into the causes of this discrepancy between growing business divisions and stagnant profits ^[7].

The stock price seems to reflect this concern. Today's closing price was 62,000 won, down 4.62% from the previous day ^[11]. Trading volume reached 759,898 shares, and while foreigners recorded a net purchase of 1.61 billion won and institutions a net purchase of 1.42 billion won ^[11], the downward trend in the stock price was clear. Over the past few days, volatility has been high as the price continued to slide from the mid-70,000 won range to the low-60,000 won range.

Onion's Perspective

Foreigners bought in? Well, if they come from abroad, they're foreigners, and a buy is a buy! ^[11] But the stock price still fell. This could be a signal that the market is prioritizing 'profitability' over 'growth.' When AI investment is massive but profits don't follow, the valuation burden inevitably increases.

Onion believes that LG CNS's expansion of AI and cloud businesses will be a strong momentum in the long run. However, in the short term, improving the low-profit structure is key. The core question is when and if positive news, such as the cooperation with NICE or the completion of the Physical AI value chain, will actually lead to an increase in profits. 📈

네이버뉴스 · 2026.07.20

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[LG CNS Stock Price Forecast] Revenue Performance Momentum Starts Reflecting in Stock Price Immediately After Tomorrow's Opening! Focus ONLY on 'This Price'! #lgcns #lgcnsstockprice #lgcnsforecast

▶Tarikul islam Mondal ·2026.07.19

🧅 LG CNS: AI Presence is Growing, but Why Aren't Profits Rising? - 2026.07.20

AI Alliance with NICE and Furiosa, Targeting Global Markets

Dominating Physical AI, Data Centers, and even Hardware?

But, Why Aren't Profits Increasing?

Onion's Perspective

📰 Reference News (10)

Samsung SDS and LG CNS Bulk Up in AI and Cloud... Why Are Profits Stagnant?

NICE Information Service and LG CNS Collaborate on AI Transformation... Expanding Global Business - PPSS

Expansion of Domestic NPU Commercialization... A New Phase for Cloud Services

[Hot Business Issues] LG, Having Lost Semiconductors, Heads Toward Physical AI

iM Securities: "LG Completes Physical AI Value Chain through Subsidiary Vertical Integration" - Robot News

Number of Unemployed College Graduates Hits 5-Year High... "AI Replacing Youth Jobs"

Samsung SDS and LG CNS Bulk Up in AI and Cloud... Why Are Profits Stagnant? - MyDaily

[Bulletin] NICE Information Service and LG CNS, MOU for AI Transformation and Joint Projects - Nate

[Bulletin] NICE Information Service and LG CNS, MOU for AI Transformation and Joint Projects

[DBR] Enhancing Corporate Competitiveness with 'Mathematical Optimization' Reflecting On-site Tacit Knowledge

📺 Reference Videos (1)

[LG CNS Stock Price Forecast] Revenue Performance Momentum Starts Reflecting in Stock Price Immediately After Tomorrow's Opening! Focus ONLY on 'This Price'! #lgcns #lgcnsstockprice #lgcnsforecast

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