Naver (035420 KP) Buy: Unlocking value as an AI infrastructure operator

Research evidence excerpt

Naver (035420 KP) Buy: Unlocking value as an AI infrastructure operator

8 June 2026

Equities

Internet Software & Services Naver (035420 KP)

Buy: Unlocking value as an AI infrastructure operator Korea

◆ Naver is expanding its datacentre capacity to 1GW over the

MAINTAIN BUY

medium to long-term to become an AI infrastructure operator

TARGET PRICE (KRW) PREVIOUS TARGET (KRW)◆ Despite potential increase in financing costs, we expect

profitability improvement in its Enterprise business 400,000 350,000

◆ Maintain Buy with raised TP of KRW400k (from KRW350k); SHARE PRICE (KRW) UPSIDE/DOWNSIDE

Enterprise business to unlock value as AI factory operator 279,000 +43.4%

(as of 08 Jun 2026)

NVIDIA partnership unveiled: As we highlighted in Mere narrative or real growth

MARKET DATA

potential? 2 June 2026, Naver announced a comprehensive partnership with NVIDIA Market cap (KRWb) 43,768 Free float 58%

on 8 June. While the cooperation spans various fronts such as utilizing NVIDIA’s Market cap (USDm) 28,068 BBG 035420 KP

3m ADTV (USDm) 210 RIC 035420.KS

DSX platform and joining the Nemotron alliance to enhance its in-house LLM

HyperCLOVA X, what the market did not expect was Naver’s emergence as a multi- FINANCIALS AND RATIOS (KRW)

gigawatt scale AI factory developer and operator. Separately from the ongoing Year to 12/2025a 12/2026e 12/2027e 12/2028e

expansion of its hyper-scale datacentre Gak Sejong, Naver announced a phase HSBC EPS 12,453 13,696 14,952 17,142

HSBC EPS (prev) 12,453 13,696 15,684 17,988

expansion of its AI datacentre capacity in Asia, starting with 55MW in 1H27, scaling Change (%) 0.0 0.0 -4.7 -4.7

up to 100MW by year-end 2027 and reaching 200MW by year-end 2028 through a Consensus EPS 13,436 12,591 14,848 16,381

PE (x) 22.4 20.4 18.7 16.3

lease-based model.