This Asian company is the key to Nvidia’s AI chip explosion

Technology: In a stunning revelation, Citigroup has highlighted South Korea’s Doosan Corporation as a major player in the tech world that is set to thrive from a groundbreaking partnership with Nvidia. The financial powerhouse forecasts a significant upside in Doosan’s stock, estimating it to rise by more than 40% in the coming year.

Citi has initiated coverage on Doosan with a “buy/high risk” recommendation, setting a 330,000 Korean won ($234) price target. The distinguishing factor? Doosan’s special role as a supplier of the “copper clad laminate” (CCL) needed for Nvidia’s anticipated Blackwell GPU. Analysts say Doosan has a key role in meeting the massive demand from tech giants like OpenAI, Microsoft and Meta — all of which are investing heavily in cutting-edge AI systems embodied in products like ChatGPT and Copilot.

The insights show that as a unique provider of Nvidia’s critical materials, Doosan is set for substantial gains. The subsidiary, Doosan Electronics, which generated more than 70% of the company’s revenue, is poised for explosive growth thanks to Nvidia’s enhanced chip production strategy. Citi estimates that Doosan’s AI-related revenue could reach 363 billion Korean won ($258 million) by 2025, driving an impressive 90% increase in operating profit.