In a remarkable market performance, SK Eternix, the renewable energy subsidiary of South Korea’s SK Group, has witnessed its stock prices skyrocket by over 114% in the past month. This surge is largely fueled by investor confidence that the burgeoning infrastructure supporting artificial intelligence (AI) will substantially boost the demand for renewable energy sources.
The company’s shares ended at 80,900 won (US$55.35) on Friday, reflecting a significant 114.6% increase from the previous month. In stark contrast, the broader Kospi index experienced a 20.9% decline, and shares of SK hynix, SK Group’s leading semiconductor company, fell by 31.2% during the same timeframe. The momentum gathered pace over the past week, with SK Eternix’s stock rising by 44.9% over five trading days. Institutional investors have shown strong interest, purchasing a net 106.8 billion won in shares, while foreign investors acquired shares worth a net 79 billion won.
Analysts attribute this robust performance to the anticipation that AI data centers, known for their substantial electricity requirements, will contribute to a long-term increase in the demand for renewable energy. This optimistic outlook is further bolstered by the South Korean government’s ongoing initiatives to enhance the nation’s clean energy capabilities.
In June, the government outlined its projection that significant industrial ventures, including AI data centers and semiconductor production hubs, would generate an extra 39.7 gigawatts of electricity demand. Additionally, it reaffirmed its commitment to augmenting the country’s renewable energy capacity to 100 gigawatts by the year 2030.
Investor enthusiasm is also buoyed by SK Eternix’s announced plans to launch a 2 trillion won renewable energy joint venture with global private equity firm KKR. This collaboration is expected to propel the company’s expansion within the clean energy sector, further enhancing its growth prospects.
