SK Eternix shares surge on AI power demand hopes

Shares of SK Eternix, an energy unit of SK Group, have more than doubled over the past month as investors bet that AI-driven power demand will boost South Korea’s renewable energy sector.

The stock closed at 80,900 won($55.35) on Friday, up 114.6 percent from a month earlier. Over the same period, the Kospi fell 20.9 percent, while shares of SK hynix, the group’s flagship chipmaker, dropped 31.2 percent.

The rally accelerated this week, with the stock gaining 44.9 percent over the past five trading sessions. Institutional and foreign investors bought a net 106.8 billion won and 79 billion won, respectively.

Analysts said demand for renewable energy is expected to rise sharply as AI data centers consume more electricity and the government pushes to expand renewable energy capacity.

The government said in June its industrial megaprojects, including AI data centers and semiconductor clusters, would create 39.7 gigawatts of additional power demand, while targeting 100 gigawatts of renewable energy capacity by 2030.

Investors also expect SK Eternix to benefit from its planned 2 trillion won renewable energy joint venture with global private equity giant KKR.

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