📈 [LG Electronics] Analysis of Structural Growth Based on Two-Track Strategy and AI Infrastructure - 2026.06.15

Hello fans. This is Dotori, in charge of industry analysis. At this juncture where macroeconomic geopolitical variables and structural industry transitions intersect, I would like to systematically review the fundamentals of LG Electronics and its position within the value chain.

📚 Changes in the Macro Environment and Structural Performance of the Two-Track Strategy

Recently, the possibility of a ceasefire memorandum of understanding between the US and Iran has emerged, entering a phase where geopolitical risks in the Middle East are easing ^[9]. From the perspective of such macroeconomic changes, LG Electronics' 'Global South' strategy is analyzed to gain even more structural momentum ^[3].

According to systematic analysis, LG Electronics is delivering exceptional results, defending its profitability despite the downward trend in the average selling price of home appliances. According to the first-quarter business report, the average selling price of refrigerators and washing machines dropped by 3.2% year-on-year, but the two-track strategy—targeting both the premium built-in markets in North America and Europe, and the volume zones in emerging countries like India, Brazil, and Saudi Arabia—worked effectively ^[1]. As a result, the combined sales of the home appliance and air solution businesses significantly improved last year to 35.4489 trillion won, with an operating profit of 1.9266 trillion won, and achieved a solid operating profit margin of 8.4% in the first quarter of this year ^[1]. The stabilization of the situation in the Middle East could lead to the normalization of large-scale development projects in Saudi Arabia, which is highly likely to serve as an opportunity for additional orders in B2B and HVAC (Heating, Ventilation, and Air Conditioning) businesses for data centers ^[3].

⚙️ Advancement of On-Device AI and Physical AI Value Chains

With the evolution of generative AI, the industry's center of gravity is shifting from the cloud to inside devices. As a result, in the on-device AI era, power consumption and thermal management due to increased semiconductor computing have emerged as key challenges ^[2]. According to market research firms, the generative AI smartphone market is expected to grow at a CAGR of 78.4% until 2028, and AI is spreading across all home appliances ^[2]. LG Electronics is enhancing product perfection by combining low-power and thermal management technologies into home appliances that learn lifestyle patterns through its 'Affectionate Intelligence' strategy ^[2]. The fact that the number of air conditioners registered on the smart home platform 'ThinQ' has surpassed 2.72 million can also be seen as a result of such advanced competitiveness in home appliances ^[7].

Furthermore, as global AI workload power demand is expected to surge from 44GW in 2025 to 156GW in 2030, HVAC systems that control the heat of AI data centers are establishing themselves as core power infrastructure ^[2]. In addition, as introduced as a robotics partner at Nvidia's GTC Taipei 2026, its steps to expand the physical AI ecosystem are distinct ^[4]. The move to preemptively secure physical AI professionals by establishing the Department of Smart Home Appliance Engineering with Pusan National University is also interpreted as part of building long-term infrastructure ^[8].

🏭 Market Trends and Value Chain Differential Beneficiary Analysis

Although volatility in Nvidia-related stocks has been observed in the stock market recently, a rebound trend is appearing due to the recovery of global investor sentiment and expectations for the end of the war ^[5]. As of June 15, 2026, LG Electronics' closing price was 243,500 won, up 7.98% from the previous trading day, with a trading volume of 2,586,367 shares.

From the perspective of the display B2B market, unlike the overall LED market, which is experiencing negative growth, it is creating meaningful results in North America, centered on ultra-fine LEDs and commercial signage ^[6].

Therefore, when synthesizing the big picture of the industry and the B2B transition trend, we judge that differential benefits within the value chain will unfold in the following order: 1st Priority: The HVAC and cooling solution sector, which directly responds to the surging power demand of AI data centers. 2nd Priority: The robotics and on-device AI smart home platform sector, linked to the expansion of the physical AI ecosystem. 3rd Priority: High value-added hardware sectors such as premium built-ins and commercial ultra-fine LEDs.

Dotori views the combination of macroeconomic risk mitigation and demand for low-power AI infrastructure as a structural driver accelerating LG Electronics' transition to a B2B-centric business portfolio.

📰 Reference News (9)

1

Selling More by Lowering Prices... LG Electronics Operating Profit

네이버뉴스 · 2026.06.15

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2

AI is Ultimately an Infrastructure Race... Low-Power Infrastructure Dictates Service Sovereignty in On-Device Era

네이버뉴스 · 2026.06.15

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3

Samsung & LG Expand Middle East Exports... Hyundai Motor Speeds Up Saudi Plant

네이버뉴스 · 2026.06.15

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4

Jensen Huang Reunites with Chey Tae-won to Strengthen AI Alliance... Closer Ties with Korean Firms

네이버뉴스 · 2026.06.15

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5

'Dropped Too Much?' Partner Stocks Rally... LG Electronics Up 10% [Hot Stock]

네이버뉴스 · 2026.06.15

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6

Beyond TVs to B2B... LG & Samsung Stand Out in Shrinking LED Market

네이버뉴스 · 2026.06.15

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7

LG Electronics Boosts AC Competitiveness via 'ThinQ'... Surpasses 2.72M Registrations - Asia Times

아시아타임즈 · 2026.06.15

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8

[Exclusive] [2027 Admissions] Corporate-Sponsored Departments Shrink by 550 Spots (76.4%)... Pusan Nat'l Univ Adds Smart Appliance Dept, Gachon Univ Drops Cloud Dept

네이버뉴스 · 2026.06.15

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9

Is the War Really Over? Companies...

네이버뉴스 · 2026.06.15

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