🥜 LG Innotek's Rapid Drop After Surging, Is It a Value Trap? - 2026.06.02

Hello, fans. This is Peanut. The market feels like it's melting down rather than just heating up. I guess everyone took a deep breath looking at the LG Innotek stock price window today.

💼 Jensen Huang Effect and Physical AI, Is It Really True?

The keywords that dominated the recent market were definitely Nvidia and Jensen Huang. As Nvidia expanded its realm beyond semiconductors to 'Physical AI' (robotics), LG Innotek, which holds vision sensing systems and semiconductor substrate businesses, was mentioned as a major affiliate to materialize close cooperation ^[3].

In addition, there was news that it is cooperating by supplying samples to SK Hynix to enter the semiconductor substrate market for Intel's cutting-edge 2.5D packaging technology, EMIB ^[2]. It is a highly difficult technology that requires embedding a silicon bridge inside the substrate, but despite being a latecomer, they are showing strong will to enter the high value-added market.

But let's pause and think here. Is commercialization really verifiable right now? Overseas companies already tightly hold the supply chain for EMIB substrates, and massive investments such as building dedicated lines of over 2 trillion won are required for mass production ^[2]. It remains to be seen whether they can break through all the technological and market hurdles.

📉 Target Price Upgrade and Fundamentals, Is It Verifiable?

Of course, the stamina of the main business is not bad. DB Financial Investment significantly raised LG Innotek's target price today from 650,000 won to 1,850,000 won ^[1]. The operating profit for the second quarter of this year is forecast to be 145.4 billion won, an 1176.8% increase year-on-year ^[1]. The analysis is that the main optical solution division is firmly supporting it, as the cumulative sales volume of North American clients is growing and the exchange rate is favorable.

Also, under the system of CEO Moon Hyuk-soo, there is a positive evaluation that the green light is on for returning to the 1 trillion won annual operating profit club in 4 years by seeking to diversify the profit structure centered on AI semiconductor substrates and mobility ^[6].

⚠️ Rapid Drop After Short-term Surge, Possibility of a Value Trap

Then why is the stock price like this. The stock price, which soared to 1,788,000 won intraday yesterday (June 1st), closed at 1,185,000 won today (June 2nd), a whopping 22.55% drop. Trading volume exceeded 1.22 million shares, and foreigners and institutions recorded net selling of 83.5 billion won and 84.1 billion won, respectively, pouring out volume.

As the stock price leaned too much in the short term due to expectations of Jensen Huang's visit to Korea, the burden of the high point grew, resulting in massive profit-taking ^[4]. As the fatigue from the short-term surge and macroeconomic variables intertwined, the leading stocks all showed signs of shaking ^[5].

Even in a bullish atmosphere, we must always check the bearish scenario. Peanut views that from a short-to-medium swing perspective, caution is needed as to whether the current valuation has excessively pre-reflected future expectations. The narrative of benefiting from AI infrastructure and advanced substrates is excellent, but until actual EMIB substrate mass production or Physical AI-related sales are printed as concrete numbers, there is a risk of a gap occurring between fundamentals and the stock price. Right now, it might be a position where we should calmly observe the market, placing it as a candidate for profit-taking trim rather than making an unreasonable approach.

Let's always make cool-headed judgments based on numbers. I will return with objective fundamental analysis next time.

📰 Reference News (6)

1

"Target Price 650K→1.85M Won" Semiconductor Substrate Latecomer Rapidly Narrows Tech Gap [Click e-Stock]

네이버뉴스 · 2026.06.02

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2

LG Innotek Eyes Intel 'EMIB' Substrate Supply Chain... Supplies Samples to SK Hynix - v.daum.net

v.daum.net · 2026.06.02

📰 View original

3

Nvidia's Jensen Huang Looks Beyond Chips to Robotics: Hyundai's Chung Eui-sun & LG's Koo Kwang-mo Target 'Close Cooperation' on 'Physical AI'

네이버뉴스 · 2026.06.02

📰 View original

4

KOSPI Breaks Through Rollercoaster Market... Settles Above 8800 for the First Time [This K-Market, That Stock]

네이버뉴스 · 2026.06.02

📰 View original

5

"Were Substrate & MLCC Expectations Too High?"... Samsung Electro-Mechanics Drops 13%, LG Innotek 21% [This K-Market, That Stock]

네이버뉴스 · 2026.06.02

📰 View original

6

"Moon Hyuk-soo's Structural Overhaul Pays Off"... LG Innotek, First Time in 4 Years

네이버뉴스 · 2026.06.02

📰 View original