[Alpha Biz= Paul Lee] Shares tied to the so-called “Jensen Huang theme” sharply reversed course, with LG Electronics plunging nearly 43% over five trading sessions after a rapid rally fueled by expectations of collaboration with NVIDIA.

LG Electronics fell 9.68% on June 10 to close at 224,000 won, extending its losing streak to five consecutive sessions, according to the Korea Exchange.

The stock had surged to near 400,000 won on optimism surrounding a potential partnership with NVIDIA, driven by expectations that Jensen Huang would visit South Korea and meet with Koo Kwang-mo. LG Electronics hit its all-time high of 392,500 won on June 2 after consecutive limit-up sessions.

However, the rally quickly reversed as profit-taking intensified, sending the stock down 42.93% over five sessions—one of the steepest declines on the benchmark index.

The sell-off extended across LG affiliates, including LG CNS, LG HelloVision, and LG Corp., which also posted double-digit losses over the same period.

Other companies that had rallied on expectations of cooperation with NVIDIA also faced sharp corrections. Broader market sentiment weakened amid concerns over U.S. inflation data and escalating geopolitical tensions in the Middle East.

Companies linked to Huang’s Korea visit—including Naver, Hyundai Motor Company, and Doosan Robotics—also saw declines after recent gains driven by AI-related collaboration expectations.

Naver, which plans to build a large-scale AI factory with NVIDIA, fell 11.67% on the day, while Hyundai Motor and Doosan Robotics also retreated sharply after hitting recent highs.

Market watchers say the sharp downturn highlights the risks of theme-driven rallies, where stocks surge on expectations rather than fundamentals, making them vulnerable to rapid corrections once sentiment shifts.

 

 

 

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