Shares of South Korea’s Naver Corp rose 8% on Monday after the internet company announced that Nvidia Corporation will acquire $1 billion of newly issued shares.
The investment is part of a partnership between the companies to develop an artificial intelligence data center.
At the time of writing Naver shares were up 8.43%.
They reached their highest level since June 22.
The stock sharply outperformed the broader KOSPI index, which fell 1% on the day.
The investment comes as Nvidia continues to expand its involvement in artificial intelligence infrastructure.
The US chipmaker is seeking to deepen its presence in South Korea’s growing AI infrastructure market.
Nvidia investment to support data center expansion
According to a regulatory filing from Naver, NVDA will purchase newly issued shares in the South Korean internet company.
The funds will be used to help finance the development of the AI data center.
The facility is being developed in partnership with Brookfield.
It is expected to operate using Nvidia’s AI computing hardware.
Naver said the funding will allow the company to more than triple the size of the data center.
The expansion highlights the growing focus on developing large-scale infrastructure capable of supporting AI computing demand.
The investment also forms part of a broader partnership announced by Nvidia last week.
The company is working to accelerate the deployment of AI infrastructure beyond its traditional base of hyperscale cloud customers.
The deal helped lift investor sentiment toward Naver.
The company’s shares gained significantly even as the wider South Korean stock market moved lower.
Nvidia expands South Korean AI partnerships
Nvidia has also announced an expanded alliance with SK Group, South Korea’s second-largest conglomerate.
Under the partnership, the companies plan to build more than two gigawatts of AI data center capacity across South Korea.
The broader initiative is expected to generate more than $500 billion in business through purchases of memory chips and AI supercomputers.
The developments point to a wider push by Nvidia to support AI infrastructure across South Korea.
The company is expanding its partnerships with major businesses as demand for AI computing capacity continues to drive investment in data centers and related technologies.
The announcements also coincide with South Korean President Lee Jae Myung’s visit to Silicon Valley.
The timing comes as Nvidia expands its investments across different parts of the AI supply chain.
Nvidia seeks broader AI infrastructure reach
Nvidia has invested billions of dollars across AI infrastructure in recent months.
Its investments have included AI startups, semiconductor suppliers and data center projects.
The company’s broader strategy is being driven by Chief Executive Jensen Huang.
He has pushed for countries to develop sovereign AI capabilities.
The approach is also aimed at reducing reliance on a limited number of hyperscale cloud providers.
Nvidia’s partnerships with companies in South Korea form part of this wider effort to expand access to AI computing infrastructure.
For Naver, the NVDA investment provides funding to significantly expand its planned data center.
The partnership also strengthens the company’s position within the country’s expanding AI infrastructure ecosystem.
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