POSCO Holdings Inc. PKX is accelerating its push into advanced manufacturing technologies as its subsidiary POSCO DX shifts its artificial intelligence (AI) strategy toward domestically developed neural processing units (NPUs). The move marks a significant step in the group’s broader effort to build intelligent factories and strengthen its digital capabilities.
POSCO DX recently announced a deal with South Korean AI semiconductor startup Mobilint. The company invested about 3 billion KRW to support the development and deployment of NPU-based solutions. These chips will be integrated into POSCO DX’s proprietary industrial control system, PosMaster, which is used to manage and automate manufacturing processes.
The initiative centers on moving away from traditional graphics processing units (GPUs), which are general-purpose and not always suited for industrial AI workloads. Instead, NPUs are purpose-built for tasks like deep learning and inference, offering better energy efficiency and lower operating costs in large-scale manufacturing.
NPUs also support edge AI, allowing data to be processed directly on-site rather than in distant data centers. This enables real-time monitoring and control while enhancing data security, which is crucial for precision-driven industries like steel and battery materials.
POSCO DX aims to develop smart factories that can make instant decisions using on-site data. Mobilint’s high-performance NPUs can run large language models at the edge, enabling faster and more efficient analysis of complex industrial data.
POSCO DX plans to expand the use of NPUs beyond pilot projects and deploy them across a wide range of operations, including steel production, secondary battery materials and logistics. The initiative positions POSCO Group at the forefront of manufacturing AI innovation. It is not only reducing reliance on foreign GPU infrastructure but also building a more efficient and secure foundation for the next generation of smart factories.
Shares of PKX are up 38.2% over the past year compared with the industry’s 12.5% growth.
PKX Zacks Rank & Key Picks
PKX currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the Conglomerates space are Marubeni Corporation MARUY, Mitsui & Co., Ltd. MITSY and Sumitomo Corporation SSUMY. MARUY, MITSY and SSUMY carry a Zacks Rank of #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for MARUY’s current fiscal-year earnings is pegged at $21.68 per share, indicating a 9.1% year-over-year increase. Shares of MARUY have jumped 142.5% over the past year.
The Zacks Consensus Estimate for MITSY’s current fiscal-year earnings is pegged at $37 per share, indicating a 8.1% year-over-year decrease. Shares of MITSY have gained 113.4% over the past year.
The Zacks Consensus Estimate for SSUMY’s current fiscal-year earnings is pegged at $3.05 per share, indicating a 0.3% year-over-year increase. Shares of SSUMY have gained 69.8% over the past year.
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This article originally published on Zacks Investment Research (zacks.com).