By Kwanwoo Jun
Hyundai Motor shares rose sharply on Friday after the company unveiled a multibillion-dollar investment plan centered on physical artificial intelligence in South Korea.
The South Korean auto giant's stock rose 11% to close at 674,000 won, marking the sharpest daily percentage gain in a month. The benchmark Kospi ended 1.0% lower.
Hyundai said it will invest about 9 trillion won, equivalent to $6.28 billion, to build an AI, robotics and hydrogen cluster in Saemangeum, a coastal area in southwestern South Korea.
The company and a local government signed a memorandum of understanding Friday to develop the project. Construction is set to begin later this year on land created through a reclamation project.
Hyundai said 5.8 trillion won--more than 60% of the total investment--will be used to build an AI data center to support autonomous-vehicle development.
The investment will also fund robot-component, hydrogen-production and solar-power plants within the cluster.
KB Securities analysts Kang Seong-jin and Kim Ji-yun said Hyundai Motor is "shifting from a traditional value stock to a growth stock powered by physical AI," with the transition accelerating from this year. They said the move could draw more global growth-focused funds.
"The investment is significant as it marks the start of the practical implementation of its physical AI vision," the KB analysts said in a research report.
Nomura analysts said Hyundai and its sibling Kia would see a sizable valuation boost from its parent auto group's robotics initiative. Boston Dynamics, an affiliate of Hyundai Motor Group, plans to deploy its Atlas humanoid robots at auto plants from 2028 and aims to produce 30,000 units a year globally.
Nomura said affiliate Hyundai Mobis could also benefit from supplying robot actuators to Boston Dynamics over several years.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
02-27-26 0329ET
