Naver's margin financing balance jumped 187.7 billion won in the first week of June, far outpacing Samsung Electronics and rivaling SK Hynix. Analysts remain upbeat, citing the company's AI infrastructure deal with Nvidia and setting price targets as high as 450,000 won.
Naver's share price has swung sharply after a surge in margin financing drove the stock into the 300,000-won range in June, fueled by what markets are calling the "Jensen Huang effect." The stock soared on expectations of a partnership with Nvidia, only to tumble after the chipmaker's CEO left the country.
Analysts, however, remain broadly optimistic. They argue that Naver's AI infrastructure project is still on track and that even a conservative valuation puts its present value at 19 trillion won.
According to Korea Exchange data, Naver opened Thursday down 3.74 percent from the previous session at 218,500 won. The stock had soared to an intraday high of 304,000 won on June 1, when Huang's visit to South Korea put a potential Nvidia collaboration in the spotlight. That move set a new 52-week high and marked the first time Naver had reclaimed the 300,000-won level since April 2022 — roughly four years.
The rally proved short-lived. On Monday, the day Huang departed, Naver closed down 7.89 percent at 257,000 won on the main bourse, and the stock continued to slide in subsequent sessions, falling into the low 200,000-won range by Thursday. Analysts attributed the selloff to profit-taking after the sharp short-term run-up. The stock remains well below Naver's all-time high of 465,000 won, set in July 2021.
The heavy influx of margin financing during the rally is seen as a burden for retail investors. According to Koscom Check, Naver's margin financing balance rose by roughly 187.7 billion won in the first week of June (June 1–5). That increase far exceeded the 5.8 billion won gain posted by Samsung Electronics over the same period and was nearly on par with SK Hynix's 188.3 billion won increase. The figures suggest retail investors piled into leveraged positions on Nvidia partnership hopes, and many who entered near the peak likely suffered significant losses as the stock reversed.
Brokerages view the recent pullback as a short-term correction after an overheated run, not a fundamental reversal. They contend that the Nvidia partnership is more than a passing market theme and could translate into real growth through an expanded AI infrastructure project. Naver and Nvidia agreed June 8 to jointly develop a global AI factory, announcing plans to begin operating a 55-megawatt infrastructure facility in 2027 and to scale up the AI infrastructure project in phases.
Choi Seung-ho, an analyst at DS Securities, said the AI factory is worth 19 trillion won in present value even under conservative assumptions, and maintained a buy rating with a price target of 450,000 won.
Seo Jeong-yeon, an analyst at Shinyoung Securities, said Nvidia views Naver as a key partner in expanding the sovereign AI market, which lends weight to Naver's own roadmap. "If Naver establishes itself as a company that sells AI solution services combining Korean-style AI infrastructure with a sovereign AI platform, it can significantly enhance its long-term growth and earnings appeal," she said, setting a price target of 400,000 won.
th5@heraldcorp.com
