Hyundai Motor's AI push struggles to offset earnings concerns

Hyundai Motor Group's push into physical artificial intelligence (AI) is failing to offset mounting investor concerns, as weakening automotive earnings prompt brokerages to cut their target prices for Hyundai Motor and Kia. Despite Hyundai Motor Group Executive Chair Chung Euisun's high-profile campaign to position the group as a leader in physical AI and robotics, analysts are trimming their price targets for the two carmakers, as their disappointing second-quarter earnings underscored slowing profitability in their core vehicle business. Speaking at the San Francisco AI Summit on Friday, Chung outlined the group's long-term vision for physical AI, describing an ecosystem in which intelligent vehicles, robots, AI-powered factories and eventually entire urban infrastructure operate as an integrated network.

The strategy extends beyond autonomous mobility to AI-driven manufacturing, logistics, energy management and smart cities. While the vision has strengthened Hyundai's long-term technology narrative, market analysts said AI alone is unlikely to support premium valuations without tangi