LG Electronics Rises 3% After Becoming Nvidia Partner
LG Electronics has become a partner of Nvidia's artificial intelligence data center power and cooling business. As a result, LG Electronics' shares rose by over 3% in premarket trading.
The company was formally registered as a power and cooling partner in the Nvidia Partner Network (NPN) on July 27th. The NPN is a global program that seeks collaboration with companies across various fields based on Nvidia's AI technology ecosystem.
LG Electronics has developed its cooling solutions business over many years, including chillers that produce cold water and coolant distribution units (CDUs). Analysts expect momentum for this business as it gains full-fledged opportunities to expand. The company entered the data center cooling market in 2011 and has solidified its market position around large-scale air-cooled chillers.
LG Electronics is expected to account for about 20% of the Eco Solution (ES) division's revenue starting next year, with an estimated $430 million in orders for data center cooling solutions secured in the first half of this year. It takes six to nine months from order to revenue recognition, and LG Electronics recently met the specification requirements for a 2.5-megawatt CDU.