[Edaily Reporter Yun Junghoon ] The South Korean stock market is buzzing after Jensen Huang, CEO of NVIDIA, identified “cybersecurity” as the next major market for artificial intelligence (AI). As security-related stocks surged across the board, securities analysts have singled out Autocrypt Co., Ltd.—a company specializing in the “physical AI” security market, which controls actual devices such as automobiles and robots—as a key beneficiary worth watching.

Security Stocks ‘Soar’ on a Single Remark by Jensen Huang… Securities Analysts Say, “Defend Against AI Attacks with AI”

According to the Korea Exchange on the 14th, as of 11:30 a.m. that day, SANDS LAB Inc.(411080)was trading at 6,600 won, up 19.78% from the previous trading day. Dream Security Co.,Ltd.(203650)(6.49%), AXGATE Co., Ltd.(356680)(5.04%), RaonSecure Co., Ltd.(042510)(17.91% AHNLAB,INC.(053800)(3.88%), and others were also showing strong gains across the board.

This upward trend is attributed to remarks by CEO Jensen Huang, which spurred buying interest. Speaking at the Goldman Sachs Technology Conference in San Francisco on the 10th (local time), CEO Huang stated, “Cybersecurity is likely to be the next major application area for AI,” adding, “As AI automates programming, not only is code generation accelerating, but the speed at which vulnerabilities are exploited is also increasing.”

The securities industry believes that as AI-enabled threats become more sophisticated, it is inevitable for companies to establish AI-based defense systems. In particular, for self-driving cars, robotaxis, and physical AI robots—where cyberattacks can go beyond simple data breaches to directly cause malfunctions and safety incidents—the importance of dedicated security solutions is expected to grow increasingly significant.

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Autocrypt Co., Ltd. Equipped with Physical AI… “Security Embedded from the Early Stages of Development”

Researchers at major securities firms, including Korea Investment & Securities, have highlighted Autocrypt Co., Ltd.’s business competitiveness amid these market trends.

Autocrypt Co., Ltd. is the only Asia-Pacific company to be named among Frost & Sullivan’s “Top 3 Global Automotive Cybersecurity Innovators of 2024.” The company does not merely use AI as a security aid; rather, it has integrated AI into the security process itself—analyzing and verifying threats from the earliest stages of development. Earlier this year at “CES 2026,” the company drew attention by unveiling “TARA” (Threat Analysis and Risk Assessment), a vehicle security lifecycle management solution powered by AI automation technology.

Market demand is also gaining momentum. An Autocrypt Co., Ltd. representative explained, “Not only have the security requirements of our existing automotive clients become significantly more stringent, but new inquiries from non-automotive sectors—such as robotics and industrial machinery—are also increasing sharply.” They added, “Given the nature of physical AI, a ‘Security by Design’ framework—which involves preemptively analyzing threats from the earliest stages of product development—has become essential.”

In fact, following its entry into the agricultural and construction machinery security markets, Autocrypt Co., Ltd. is reportedly actively engaged in cybersecurity consulting, development, and testing with major domestic robot manufacturers.

“The More Mass Production, the More Royalties Accumulate”… High-Profit Business Structure Draws Attention

The securities industry identifies Autocrypt Co., Ltd.’s greatest strength as its “sustainable revenue structure.” The company secures security projects during the development phase to generate revenue from consulting and development, and once the client’s product—which incorporates the solution—enters mass production, it collects royalties proportional to production volume. In essence, new orders translate into high-margin recurring revenue in the future.

Improvements in the company’s earnings fundamentals are also becoming evident. Autocrypt Co., Ltd.’s second-quarter revenue this year reached 7.5 billion won, a 37.4% increase from the same period last year. Security design and development projects for automotive clients drove these results. In particular, royalty revenue for the first half of the year surged 154% year-over-year to 1.67 billion won. In the first half of this year alone, the company secured eight new mass-production development projects—exceeding half of its annual target (14 projects).

An official from IBK Investment & Securities stated, “Along with growing demand for automotive cybersecurity, high-margin royalty revenue—which is expected to take off in earnest after 2028—is a key growth driver,” adding, “If the AI cybersecurity market accelerates its growth, the accumulation of new projects and the timing of royalty revenue contributions could occur sooner than the market expects.”

Meanwhile, Autocrypt Co., Ltd. is trading at 6,770 won, down 7.26% from the previous day.