LG Trio: Next Growth Chapter: S. Korea Technology

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Asia Pacific Insight

August 11, 2026 01:28 PM GMT

S. Korea Technology

Morgan Stanley & Co. International plc, Seoul Branch+

Ryan Kim

Equity Analyst

LG Trio: Next Growth Chapter

Morgan Stanley & Co. International plc+

Shawn Kim

AI is broadening the LG investment opportunity beyond TVs,

smartphones, and displays. We prefer LGE and LGI as they offer

a compelling combination of improving earnings, valuation

upside, and long-term AI optionality. Our EW on LGD remains

primarily tied to OLED execution.

Key Takeaways

Equity Analyst

Morgan Stanley & Co. International plc, Seoul Branch+

Young Suk Shin

Equity Analyst

Morgan Stanley Asia Limited+

Duan Liu

Equity Analyst

We see the next phase of AI beneficiaries extending beyond semiconductors into

intelligent hardware, where LGE and LGI are well positioned.

Commercial HVAC, robotics, and AI components provide multiple earnings levers

Morgan Stanley & Co. International plc+

Cindy Huang

Equity Analyst

beyond traditional hardware cycles.

LGD's improving fundamentals are encouraging, but valuation upside remains

more execution-driven than structural.

Beyond traditional hardware cycles: The investment debate around LG Group has

historically centered on TVs, smartphones, and display cycles. While these

businesses remain important earnings drivers, we believe the investment framework

is gradually expanding. As AI moves beyond the data center into factories, vehicles,

buildings and homes, demand is increasingly shifting toward intelligent hardware

S. Korea Technology

Asia Pacific

Industry View

Attractive

What’s Changed

that enables AI deployment in the physical world. We believe LG Electronics and LG

LG Electronics (066570.KS)

Rating

From

To

Equal-weight Overweight

Innotek are well positioned to benefit given their growing exposure to robotics,

Price Target

W95,000

LG Innotek (011070.KS)

Rating

From

To

Equal-weight Overweight

Price Target

W265,000

W640,000

LG Display (034220.KS)

Price Target

From

W16,800

To

W10,000

commercial HVAC, AI data center cooling, automotive electronics, sensing and

advanced optical components.…