This article first appeared on GuruFocus.
Investor enthusiasm around robotics has injected fresh momentum into Hyundai Motor (HYMLF) group shares, which have added roughly $24 billion in market value so far this month as the theme carries into the new year. The automaker’s stock jumped more than 10% on Tuesday to a new record after analysts lifted price targets following the debut of its Atlas humanoid at the CES technology show last week. That move has rippled across the group, with affiliates including Hyundai Glovis, Hyundai Mobis and Hyundai Autoever also reaching all-time highs.
A partnership with Nvidia, including collaboration linked to Atlas, has been a key catalyst behind rising interest in Hyundai’s physical artificial intelligence ambitions over recent months. Investors appear to be reassessing the group after its shares lagged last year’s rally in South Korea’s equity market, which was dominated by excitement around AI memory chips and corporate reform stories. Some market participants suggest Hyundai’s push into robotics and self-driving technologies could be altering perceptions of the company, while its valuation remains comparatively undemanding.
Hyundai Motor shares trade at 8.3 times forward earnings estimates, below the Kospi’s multiple of 10, a gap that some see as leaving scope for further upside if sentiment holds. The broader backdrop includes growing investor demand for AI exposure tied to physical applications, with developments such as IPO preparations at HD Hyundai Robotics adding to the momentum. Separately, Hyundai’s Boston Dynamics unit is estimated by Daol Investment & Securities to be worth 100 trillion won, or about $68 billion, though the group has said it has no concrete plans to pursue a listing of the US-based robotics firm acquired in 2020.