Investor enthusiasm over the growth of artificial intelligence (AI) infrastructure has spurred a remarkable rise in the shares of SK Eternix, the renewable energy subsidiary of South Korea’s SK Group. Over the past month, the company’s stock has more than doubled, climbing by 114.6% to close at 80,900 won (US$55.35) on Friday. This is in stark contrast to the broader market, where the benchmark Kospi index dropped 20.9% and SK Group’s semiconductor unit, SK hynix, saw a decline of 31.2% during the same period.
The surge in SK Eternix shares gained momentum this past week, with the stock rising 44.9% over the last five trading days alone. Institutional investors have been particularly active, purchasing a net 106.8 billion won in shares, while foreign investors added a further net 79 billion won to their holdings. Analysts attribute this rally to the anticipated increase in demand for renewable energy, as AI data centers, which consume substantial amounts of electricity, continue to expand.
Further boosting investor confidence is the South Korean government’s commitment to enhancing its clean energy infrastructure. In June, the government announced projections that major industrial initiatives, such as AI data centers and semiconductor manufacturing hubs, would necessitate an additional 39.7 gigawatts of electricity. Additionally, it reaffirmed its objective to elevate the nation’s renewable energy capacity to 100 gigawatts by the year 2030.
Adding to the positive outlook for SK Eternix is its recent agreement with global private equity firm KKR to form a 2 trillion won joint venture focused on renewable energy. This collaboration is expected to accelerate the company’s expansion within the clean energy domain, further fueling investor optimism about its future growth prospects.
