In a remarkable turn of events, SK Eternix, the renewable energy division of South Korea’s SK Group, has seen its stock skyrocket by over 114% in the past month. This surge is largely attributed to the growing investor enthusiasm around the expansion of artificial intelligence (AI) infrastructures, which are anticipated to heighten the demand for renewable energy sources significantly.
As of Friday, the company’s stock had reached 80,900 won (approximately US$55.35), reflecting a substantial 114.6% increase from a month prior. In contrast, the broader market saw the benchmark Kospi index drop by 20.9%, while SK hynix, SK Group’s leading semiconductor entity, experienced a 31.2% decline in its shares. Over the last week alone, SK Eternix has surged by 44.9%, with institutional investors acquiring a net 106.8 billion won in shares and foreign investors purchasing a net 79 billion won.
Analysts suggest that the impressive stock performance is driven by expectations that the burgeoning AI data centers, which require substantial electricity, will boost long-term demand for renewable energy. This optimism is further bolstered by the South Korean government’s persistent initiatives to enlarge its clean energy capacity. In June, the government forecasted that significant industrial projects, including AI data centers and semiconductor manufacturing clusters, would lead to an additional demand of 39.7 gigawatts of electricity. The administration also reiterated its ambition to expand the nation’s renewable energy capacity to 100 gigawatts by the year 2030.
Another factor reinforcing investor confidence is SK Eternix’s forthcoming 2 trillion won renewable energy joint venture with the global private equity firm KKR. This strategic partnership is anticipated to accelerate SK Eternix’s growth trajectory within the clean energy sector, further enhancing its appeal to investors aiming to capitalize on the transition to sustainable energy solutions.