Citigroup has identified South Korea’s Doosan Corp as an important beneficiary of Nvidia’s next-generation artificial intelligence chips, and expects its stock price to rise more than 40% in the next 12 months. Wall Street banks gave Doosan a “buy/high risk” rating for the first time and set a target price of 330,000 won ($234) for the stock. The investment bank’s analysts highlighted Doosan’s unique position as Nvidia’s exclusive supplier of “copper clad laminates” (CCL), a key component of the chip giant’s upcoming Blackwell graphics processing units (GPUs). Nvidia’s next-generation artificial intelligence chip, Blackwell, is welcomed by companies such as OpenAI, Microsoft, Meta, and others building artificial intelligence data centers to support products such as ChatGPT and Copilot. Citi analysts led by Josh Yang said in a Nov. 13 note to clients titled “Unique Direct”: “As the sole CCL supplier of Nvidia Blackwell chips, we expect Doosan to be the sole CCL supplier throughout (2025 estimates). period) directly benefited from Blackwell’s production of CCL, a material used in the production of printed circuit boards used in electronics such as servers and smartphones. Doosan’s CCL is manufactured by Doosan Electronics, which accounts for a majority of the company’s revenue. More than 70%. Citi said that as Nvidia increases the production of new artificial intelligence chips, the electronics sector is expected to grow significantly. Citi predicts that Doosan’s artificial intelligence-related revenue will reach 363 billion won ($258 million) in 2025. That drove operating profit growth of 90% for the year. Analysts at the bank believe this estimate may be conservative because of the increased CCL content per Blackwell wafer, which may translate into a higher total addressable market than previously estimated. Doosan’s stock has shown strong performance, rising nearly 150% this year and nearly tripling in value over the past year. The company is now valued at about $2.5 billion by U.S. investors. Buy stocks through ETFs like the Schwab Fundamental International Small Co. Index ETF and the Invesco FTSE RAFI Developed Markets ex-US Small-Mid ETF Doosan is one of South Korea’s oldest conglomerates, with subsidiaries spanning energy, robotics, construction and real estate. and other areas. —CNBC’s Michael Bloom and CJ Haddad contributed reporting.
Citi: South Korean stocks are “unique” beneficiaries of Nvidia’s artificial intelligence chips | Real Time Headlines
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