⚙️ LS, The Link Between AI Grid Expansion and Group Value - 2026.08.05

Hello, Dotori. The biggest change surrounding LS is that AI data centers are simultaneously driving demand for power equipment and cables. With news that LS Electric, LS Eco Energy, and LS Marine Solution all recorded record-high performances in the first half of the year, the question is shifting from whether they have orders to how much this connection is reflected in the total value of LS ^[1].

🔗 Let's Look at the Big Picture

AI data centers are not just about adding servers. Power must be brought in, stably divided, and transported over long distances. It has been reported that LS Electric supplied power distribution components to the xAI data center built in Memphis, Tennessee, and is in discussions for additional supply ^[2]. The fact that LS Electric has entered the power connection point of AI infrastructure is significant, as these are the devices that stably distribute and control power within the data center to servers and facilities.

This is why we need to look at the entire power grid, not just a single server. As AI facilities increase, not only power distribution equipment but also cables and materials can move in tandem. It has been reported that the LS Group is targeting the big tech AI infrastructure market, including the U.S., based on a supply chain that ranges from LS MnM’s materials, Gaon Cable and LS Cable & System’s cables, to LS Electric’s power equipment ^[3].

⚙️ Do the Performances Mesh Like Gears?

Driven by the expansion of AI data centers and the demand for North American grid replacement, LS Electric recorded an operating profit of 178,500,000,000 KRW in the second quarter, which reports indicate is the highest quarterly performance ever. The order backlog was presented as 7,000,000,000,000 KRW ^[4], and the first-half profit margin was introduced as 10.3% ^[5]. The fact that profitability indicators were mentioned alongside top-line growth is a new aspect of this current trend.

From the perspective of LS as a holding company, the key is whether the performance of affiliates is separate or tied together as a single value chain. If the structure leading from materials to cables, and from cables to power equipment, is actually linked to supply and performance, it is possible for the group to receive AI power demand across multiple stages. Of course, there is a gap between 'possible' and 'already confirmed.' We must continue to separately observe the speed at which orders translate into sales and profit, and how the product mix changes.

🏭 Breaking Down Differential Benefits in the Value Chain

Priority 1 is Power Equipment, specifically LS Electric, which distributes and controls data center power. This is because the supply case for the xAI data center and record-high quarterly performance have been confirmed together ^{[2] [4]}.

Priority 2 is Cables, the area connecting data centers and power grids, such as LS Cable & System and Gaon Cable. As both AI facility expansion and global grid replacement are mentioned, the role of the power transmission segment is growing ^{[1] [3]}.

Priority 3 is Materials, which can be seen as the foundation for the cable and power equipment supply chain, such as LS MnM ^[3]. However, it is not possible to divide the performance contribution of each business based solely on the provided data. In a relay race, it is confirmed that there are multiple runners, but we still need more scorecards to see who ran how far.

📚 Stock Reaction and Remaining Variables

LS stock closed at ₩330,000 on August 5, 2026, up 9.82% from the previous day, with a trading volume of 170,187. Net foreign buying was -8.34 billion, while net institutional buying was +1.55 billion. The closing price trend from July 31 to August 5 moved from ₩267,000 to ₩330,000. This can be read as a period where performance and AI power grid narratives were quickly reflected in the stock price, but price reactions alone cannot confirm the performance turnaround of the entire group.

Dotori, while the structure of AI power demand passing through multiple LS affiliates is certainly interesting, I believe the actual value will depend on the conversion of the order backlog into sales, the proportion of high-value products, and the degree of connection between affiliate performances. Whether additional AI data center supply follows, whether cables and materials also ride the same demand cycle, and at what speed these results are reflected in the LS holding company's performance are the next points to observe.

📰 Reference News (5)

1

LS Power Trio Records 'Record-High' Quarterly Performance in Tandem with AI Demand

네이버뉴스 · 2026.08.05

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2

The 'Korea Supply Chain Alliance' Fueling Musk's Korea Visit Rumors... Beyond Semiconductors to Space and AI

네이버뉴스 · 2026.08.05

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3

"Sweeping the Big Tech AI Infrastructure Market with the LS Group Value Chain"

네이버뉴스 · 2026.08.04

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4

LS Electric Rides AI Power Supercycle, Q2 Operating Profit of 178.5 Billion... 'All-Time High' Performance Jackpot

네이버뉴스 · 2026.08.03

📰 View original

5

LS Electric, Growth in Both Top-line and Profitability... 10.3% H1 Profit Margin - Data News

데이터뉴스 · 2026.08.03

📰 View original