[Edaily Reporter Shin Ha-yeon] On the 9th, Daol Investment & Securities assessed that #NAVER’s AI Factory business could serve as a driver of earnings growth and valuation re-rating. The firm maintained its “Buy” rating and raised its target price by 33.3% from 300,000 won to 400,000 won.

Kim Hye-young, an analyst at Daol Investment & Securities, stated, “We believe the company’s AI Factory business is a driver of earnings growth and valuation re-rating.”

Naver unveiled its new AI Factory business on the 8th. Through a strategic partnership with NVIDIA, Naver plans to build and operate AI Factories centered not only in Korea but also across Asia.

Analyst Kim explained, “The company will lead the acquisition, construction, and operation of data center sites, while NVIDIA will participate as a business partner by supplying GPUs and jointly bearing the risks associated with global customer acquisition, revenue, and business operations.”

The capacity of the AI data centers is expected to expand in phases. Analyst Kim explained, “The target capacity for the AI data centers is 55 MW in the first half of 2027, 100 MW by the end of 2027, and 200 MW in 2028,” adding, “Ultimately, we plan to build GW-scale infrastructure.” He further analyzed, “Consequently, revenue is expected to be gradually reflected starting in the second half of 2027, and in five years, revenue from this new business alone is projected to exceed 20 trillion won.”

In particular, he judged that while the revenue targets presented by Naver are ambitious, they are also realistic. Analyst Kim noted, “The company has projected revenue of 40–50 trillion won five years from now,” explaining that “this figure is based on an assumption of 20 trillion won in existing revenue and 20–30 trillion won in AI Factory revenue.”

He continued, “In the first quarter of this year, CoreWeave generated 3.2 trillion won in revenue with an 850MW capacity,” adding, “If the company secures over 1GW and generates additional revenue by providing customized services to customers, I believe an annual revenue target of 20 trillion won is a fully realistic goal.”

Analyst Kim explained, “For the 200 MW already secured, Naver plans to invest $1 billion in capital, with an additional $1 billion from strategic partners,” adding, “As of the first quarter, Naver’s cash and cash equivalents (including short-term financial instruments) totaled approximately 9 trillion won, so I believe investing up to $1 billion would not pose a significant burden.”

He continued, “Since approximately $8 billion will be required for the 800 MW capacity after 2028, additional partnerships or fundraising are expected,” adding, “Overseas Big Tech companies such as Alphabet, Amazon, and Meta have previously issued corporate bonds and even carried out rights offerings.”

He also noted, “Since this is an investment in future growth engines, it is a critical time to focus on the business’s growth potential rather than the method of funding,” and emphasized, “We view Naver’s AI Factory business positively.”

Meanwhile, Daol Investment & Securities adjusted Naver’s target earnings per share (EPS) calculation period to 2027 and raised its target price-to-earnings ratio (PER) from 25x to 28x. This reflects expectations for the new AI Factory business.

Analyst Kim emphasized, “We have adjusted the company’s target EPS calculation period to 2027, raised the target P/E ratio from 25.0x to 28.0x, and revised the target share price from 300,000 won to 400,000 won,” adding, “We maintain our top pick status in the internet sector and recommend a ‘Buy’ rating.”