LG Electronics Stock Soars on Robotics and AI Growth, Strong Q1 Forecasts

LG Electronics Shares Experience Significant Surge

LG Electronics witnessed a substantial surge in its stock price on February 11, 2026, with shares climbing by as much as 17%, reaching 121,700 KRW by 11:40 AM, according to Herald Economy. Other reports indicate a close of 127,900 won, marking a 22.98% increase on the Korea Exchange. This notable rally was attributed to the company's expanding robotics division, strong first-quarter profit forecasts, and a strategic emphasis on artificial intelligence (AI) and industrial automation.

The positive market sentiment was further fueled by leading brokerage firm Daishin Securities, which elevated LG's target stock price to 160,000 KRW. This adjustment was based on a projected 28% year-on-year operating profit increase for the first quarter of 2026, anticipating 1.61 trillion KRW, which surpasses the market consensus of 1.37 trillion KRW. LG Electronics is scheduled to release its Q1 2026 earnings on April 23, 2026.

Strategic Expansion in Robotics and AI

LG Electronics has been actively transforming its business model, moving beyond traditional home appliances to become a significant player in the robotics and AI sectors. The company's robotics portfolio is diversifying from consumer-focused robots, such as CLOi, to include industrial robots designed for logistics, like the CLOi CarryBot.

Key strategic moves in this expansion include:

• Investments in Robotics Firms: LG has made equity investments in specialized robotics companies, including Robotis (actuators), Robostar (industrial multi-joint and smart factory robots), and Bear Robotics (AI-based autonomous service robots). The company has also secured a majority stake in Bear Robotics.
• Robotics Business Restructuring: Plans are underway to reorganize its robot business, including transferring part of its B2B robot team to Bear Robotics to maximize technological synergy.

Focus on Physical AI and Industrial Automation

At the core of LG's strategic pivot is its commitment to Artificial Intelligence, particularly Physical AI, and industrial automation. The company's AI research arm, LG AI Research, is developing Exaone, an advanced AI platform, and integrating it with Physical AI to create integrated autonomous systems across various industries.

LG officially entered the smart factory services market in 2024, aiming to leverage its 66 years of manufacturing expertise with AI and digital transformation capabilities. These smart factory solutions incorporate AI-driven robotics, autonomous logistics, and digital twin technology to modernize manufacturing processes. The company plans to aggressively expand this business into high-growth sectors such as semiconductors, pharmaceuticals, biotechnology, and food and drink, with an ambitious goal of developing it into a multi-trillion KRW enterprise by 2030.

Analyst Optimism and Market Outlook

Financial analysts are increasingly viewing LG Electronics as a robotics and physical AI company rather than solely a home appliance manufacturer. This shift in perception, coupled with the strong Q1 2026 profit forecasts, has led to multiple brokerage firms raising their target prices for LG Electronics. While the stock experienced some profit-taking the day after its significant surge, the overall sentiment remains optimistic regarding LG's long-term growth potential in these advanced technological fields.