Hyundai stocks got an unexpected boost when rumours of an Nvidia alliance spread.
Shares of Hyundai Motor surged to a record high on Wednesday, rallying by as much as 14.9% in morning trade. The dramatic jump significantly outperformed the benchmark KOSPI index, which posted a modest 1.2% gain, driven by intense market speculation regarding a deepening alliance with tech giant Nvidia.
While the automaker made headlines at the Consumer Electronics Show (CES) in Las Vegas with its robotics announcements, analysts believe the real catalyst for the stock’s explosive performance lies in the potential for a strategic expansion of its relationship with the US chipmaker.
Beyond Robots: Why the Stock Really Rallied
At CES, Hyundai announced plans to deploy Atlas humanoid robots in its factories, targeting a production run of around 30,000 units by 2028. However, Shin Yoon-chul, an analyst at Kiwoom Securities, noted that this announcement alone was insufficient to explain the massive rally, particularly as the Atlas product was reportedly showcased only as a static mock-up display.
Instead, the market’s enthusiasm appears to be fueled by a high-profile meeting between Hyundai Motor Group Chair Euisun Chung and Nvidia CEO Jensen Huang at the event.
The Nvidia Connection
According to Shin, investor expectations are rising that the partnership between the two giants could evolve beyond a simple chip supply arrangement.
The market seems to be pricing in the possibility of a much deeper collaboration, which could potentially include direct investments by Nvidia into Hyundai affiliates. If realised, such a move would signal a major vote of confidence in Hyundai’s tech capabilities and could unlock further upside potential for shares of Hyundai Motor and its group affiliates.
As the automotive and tech industries continue to converge, a strengthened Hyundai-Nvidia alliance could position the Korean automaker as a frontrunner in the race for software-defined vehicles and AI-driven manufacturing.
