Hyundai Motor to Collaborate with NVIDIA on Autonomous Driving by 2028… Announces 800 Billion Won Share Buyback and Cancellation

Kwon Soon-woo, Head of the Coverage Team, analyzed that the valuation relative to earnings did not adequately reflect future value. This is because market expectations were already largely priced into the stock.

He noted that while economic growth is positive, increasing household debt could be a variable. However, he added that the situation is not severe enough for an interest rate hike to cause a massive market shock, suggesting a cautious approach rather than an urgent increase.

Furthermore, it plans to mass-produce NVIDIA-based Level 2+ autonomous vehicles by 2028 and operate an AI data center in Saemangeum by 2029, preparing for the future mobility era. This strategy demonstrates Hyundai Motor's ambition to evolve beyond a mere car manufacturer into a data-driven smart mobility solutions company.

Hyundai Motor plans to actively utilize data collected from mass-produced vehicles for AI training to advance autonomous driving technology. Kwon Soon-woo, Head of the Coverage Team, projected that Hyundai Motor's accumulated data volume would surpass that of its competitor, Tesla, around 2033. This analysis is based on Hyundai Motor's high sales volume accelerating data acquisition.

Kwon Soon-woo, Head of the Coverage Team, explained that this is a very high profitability target for an automobile manufacturer. This demonstrates Hyundai Motor's commitment to strengthening profitability and reinvesting it in future car development.

Furthermore, it aims to expand global production capacity to 1.27 million units by 2030 to flexibly respond to market changes and proactively meet future mobility demand.

Kwon Soon-woo, Head of the Coverage Team, noted that unlike most automobile companies that are downsizing factories, Hyundai Motor is expanding its production capacity. This shows that Hyundai Motor has a unique structure of using current profits for future car development.

Kwon Soon-woo, Head of the Coverage Team, reported that these announcements were made the previous day. Additionally, Hyundai Motor revealed plans to deploy Boston Dynamics' humanoid robot, Atlas, at its HMGMA plant in the US by 2028, signaling innovation in future production systems.

OpenAI released performance measurement results for 'Habanero,' an AI accelerator co-developed with Broadcom. Kwon Soon-woo, Head of the Coverage Team, reported that this chip has 1.5 to 1.9 times higher throughput per watt compared to NVIDIA's Blackwell. He also stated that its responsiveness is 4 times higher and recorded similar performance to another competing chip, Vera Rubin, increasing the likelihood of success for its self-developed chip.

Kwon Soon-woo, Head of the Coverage Team, emphasized that connectivity through clustering, rather than chip unit performance, will be the key competitive advantage. This is considered a significant move that could change the landscape of the AI chip market.

Kwon Soon-woo, Head of the Coverage Team, commented that if this is true, it would be positive news for Korean investors. This could increase Samsung Electronics' negotiation power as a memory supplier and further strengthen its position in the AI semiconductor market.

Kwon Soon-woo, Head of the Coverage Team, explained that this goal should be interpreted as a marketing statement to boost the company's value upon listing. This suggests that setting overly ambitious goals can confuse investors.

This is considered a reasonable reform aimed at promoting balanced regional development and revitalizing corporate investment.

Among this, solar power is set to expand significantly from 30GW to 155GW, and wind power from 2GW to 51GW. Kwon Soon-woo, Head of the Coverage Team, emphasized that consistent and reliable policies capable of attracting corporate investment are crucial for achieving these goals.

Kwon Soon-woo, Head of the Coverage Team, pointed out that even if the government's plans to expand renewable energy and nuclear power facilities are fully implemented, there is still a possibility of power shortages. This indicates an urgent need for practical measures to ensure a stable power supply.

Kwon Soon-woo, Head of the Coverage Team, noted that the transformer industry is transforming into a position of leading its clients, analyzing that individual companies' fundamentals are sound.

Kwon Soon-woo, Head of the Coverage Team, explained that this signifies a complete expansion of the domestic battery market. The growth of the domestic battery industry is anticipated to accelerate.

It features a transparent glass window to directly monitor cooking status and is priced at 99,000 won.