NHN Price Target Jumps 27% to 80,000 Won on Data Center

Key Takeaways

The key reason NHN’s price target rose to 80,000 won was not AI-driven expectations, but the fact that the Yangpyeong data center generated actual revenue and profit in the second quarter of 2026. Korea Investment & Securities raised its price target by 27%, from 63,000 won to 80,000 won, in a September 4 report.

Yoon Jae-ho’s assessment is clear. The investment case for NHN rests on a shift in how the company is valued—from a gaming and payments conglomerate to a GPU infrastructure operator. However, because the price target applies projected 2028 earnings in advance, any delay to the 30MW expansion could reverse the valuation rerating.

What Happened

According to Maeil Business Newspaper and Korea Investment & Securities, NHN recognized revenue and profit from its newly operational Yangpyeong data center in its second-quarter 2026 earnings. Consolidated revenue rose 25.3% year over year to 757.9 billion won, while operating profit surged 164.1% to a quarterly record of 57.9 billion won.

GPUaaS allows companies and public institutions to rent data-center computing resources instead of purchasing costly graphics processing units directly. Revenue from the technology division rose 52.9% year over year in the second quarter of 2026, driven by expansion of the AI GPU business. This was the first point at which the narrative was matched by actual delivery figures.

Background and Context

AI data centers begin generating revenue only after securing a site, building power and cooling infrastructure, and installing GPUs. While competitors remain at the stage of discussing investment plans and potential orders, NHN has already presented operating results from its Yangpyeong facility. For a company with a relatively small market capitalization, even a limited capacity increase can significantly boost the growth rate of consolidated earnings.

The next step is securing 30MW of capacity. NHN plans to lease a 20MW facility in Pohang and build another 10MW itself, with operations scheduled to begin at the end of 2027. Korea Investment & Securities estimates that once a long-term contract for the Yangpyeong data center is finalized, it could generate approximately 400 billion won in revenue over four years from 2027 onward.

Impact on the Market and Stocks

• NHN: Higher utilization at Yangpyeong will simultaneously drive technology revenue growth and improve fixed-cost absorption. If contracts for the 30MW expansion proceed, the cloud business—previously overshadowed by gaming and payments—could be valued as a separate growth pillar.
• NHN KCP: Trading value reached 17 trillion won in the second quarter of 2026, up 34% year over year. If the payments division maintains its cash-generating capacity, it could partly cushion the funding burden required for data-center investment.
• Samsung SDS: The company is a domestic peer in cloud and AI data centers. NHN’s tangible earnings contribution could lift valuation multiples across the industry sector, although competition with larger operators for power and GPU procurement may increase costs.
• LG CNS: The company is expected to benefit alongside broader growth in enterprise cloud and data-center demand. However, competition for small and midsize projects could intensify if NHN leverages its experience operating public-sector GPUs to expand its private-sector client base.

Investor Checklist

• Investors should verify whether technology-division revenue growth and the Yangpyeong data center’s profit contribution are sustained in third-quarter 2026 earnings.
• Contract and investment disclosures should be monitored to confirm whether the 20MW lease in Pohang and NHN’s own 10MW facility remain on schedule through 2027.
• Investors should distinguish between operating government-owned GPUs and purchasing GPUs directly. The former carries a lower depreciation burden, while the latter offers greater revenue potential but increases interest expense and depreciation.
• New game launches and NHN KCP’s trading value should also be monitored. If cash flow from existing businesses weakens, the financial burden of expanding data-center capacity will become more pronounced.

Outlook

The bullish scenario assumes that the Yangpyeong long-term contract is signed and the additional 30MW of capacity is secured on schedule. If utilization rises quickly and GPU rental rates remain stable, fixed-cost leverage could cause technology-division profit growth to outpace revenue growth.

The downside scenario must also be considered. If NHN increases the share of GPUs it procures directly, debt and depreciation expenses will be recognized before customer utilization catches up. Because the 80,000 won price target reflects 2028 earnings, when the 30MW expansion is expected to be operational, delays in construction or power procurement would leave the current share price running two years ahead of actual earnings.

Frequently Asked Questions

Why was NHN’s price target raised to 80,000 won?

On September 4, 2026, Korea Investment & Securities raised its price target by 27% to reflect the Yangpyeong data center’s revenue and profit-generating capacity and the additional 30MW expansion. The rationale is based not merely on an AI theme, but on second-quarter technology revenue growth and actual operating profit.

How much can NHN’s Yangpyeong data center earn?

Korea Investment & Securities estimates that once a long-term contract for the Yangpyeong data center is completed, the facility could generate approximately 400 billion won in revenue over four years from 2027 onward. Actual profit will depend on GPU ownership, contract pricing, and utilization.

What is the biggest risk to NHN’s share price?

The biggest risks are delays to the 30MW expansion targeted for the end of 2027 and higher financing costs from purchasing GPUs directly. If utilization at the new facilities falls short of expectations, depreciation could rise before revenue, reducing the operating margin.

This article was automatically summarized and analyzed based on the original news report. View Original Article (Maeil Business Newspaper Securities)