[Edaily Reporter Kim Kyung-eun ] On the 28th, Hana Securities assessed that the key uncertainty surrounding Naver’s ( NAVER(035420)) artificial intelligence (AI) data center business had been resolved following the confirmation of a $9 billion investment by global investment firm Brookfield. Accordingly, the firm maintained its target price of 400,000 won and its “Buy” rating. It projected that the new business’s contribution to earnings would become more visible as client contracts, graphics processing unit (GPU) installations, and the launch of commercial services proceed.

Lee Jun-ho, an analyst at Hana Securities, stated in a report released today, “We maintain our status as the top pick in the internet sector and strongly recommend buying the stock.”

Naver announced the previous day that it had signed a $9 billion agreement with Brookfield to secure computing infrastructure. This cleared the precondition for receiving a $1 billion equity investment from NVIDIA to be deployed in the AI Factory business.

The analyst assessed, “With the Brookfield financing completed and a strong partnership expected through NVIDIA’s equity investment, the business is moving from the investment planning phase to the actual service delivery stage as key uncertainties regarding funding and infrastructure acquisition have been resolved.”

With the confirmation of this investment, the business structure has also undergone some changes. Previously, plans were underway for Naver to establish a separate AI Factory operating company, but moving forward, Naver Cloud will serve as the business entity. Under this arrangement, “Asset Co.”—a special-purpose company established by Brookfield’s AI infrastructure fund—will build the computing service infrastructure, which Naver Cloud will then utilize.

Naver will also provide a payment guarantee of approximately 18.7 trillion won. This represents the total nominal amount for the supply of GPU-as-a-Service (GPUaaS), and Hana Securities estimates that the usage fees paid by Naver Cloud will amount to approximately 3 trillion won annually.

Changes in accounting treatment are also expected. Even if Naver does not directly hold shares in Asset Co., it will be consolidated as a subsidiary under Korean International Financial Reporting Standards (K-IFRS) if control is recognized. Consequently, assets and capital related to the AI data center will be reflected in Naver’s financial statements, and Asset Co.’s operating profit is expected to be included in the consolidated results.

Hana Securities projected that once the construction of the 200-megawatt (MW) data center is completed, Naver’s annual operating profit margin will exceed 30%. It also forecast steep earnings growth for the AI cloud business. Hana Securities estimated that the NeoCloud business will generate revenue of 1.0566 trillion won and operating profit of 273.8 billion won in 2027. By 2028, revenue is projected to increase to 3.3606 trillion won, with operating profit reaching 1.0706 trillion won. The operating profit margin is also expected to rise from 25.9% in 2027 to 32.2% in 2028.

These estimates are based on annual revenue of 23.5 billion won per MW. This figure assumes a long-term contract price that is 45% lower than the short-term rental rate for NVIDIA B300 GPUs offered by global NeoCloud companies. Analysts note that if short-term contracts are actually included in the mix, revenue could exceed expectations.

The business expansion schedule is also taking shape. Naver aims to supply AI data centers with a capacity of 55 MW in the first half of 2027, 100 MW by the end of that year, and 200 MW by the end of 2028. It is understood that agreements to secure leased data center space and purchase GPUs have been finalized to support these goals.

The analyst emphasized, “Amid rapidly shifting investor sentiment in the AI data center sector, it is necessary to prioritize operators that possess the cash generation capacity and customer base from their existing businesses, as well as a solid foundation for collaboration with supply chain partners—including NVIDIA—and AI companies.”

He added, “The stock price has not fully reflected the business’s value since the initial announcement of its entry into the AI data center business,” and predicted, “Over the next six months, initial revenue will gradually materialize in tandem with client contracts, GPU installations, and the launch of commercial services.”