SK Eternix, a key player in South Korea’s push for renewable energy under the SK Group umbrella, has witnessed a remarkable surge in its stock value, climbing over 114% in the past month. This impressive gain is attributed to growing investor confidence in the burgeoning demand for renewable energy, spurred by the rapid expansion of artificial intelligence (AI) infrastructure. As of Friday, the company’s shares closed at 80,900 won, equivalent to about US$55.35, showcasing a stark contrast to the broader market trends where the Kospi index dropped by 20.9% and SK hynix, a flagship semiconductor company of SK Group, saw its shares plummet by 31.2%.
The upward momentum in SK Eternix’s stock intensified significantly this week, with a notable 44.9% rise over the last five trading days. Institutional investors have shown strong interest, purchasing a net 106.8 billion won in shares, complemented by foreign investors who added a net 79 billion won to their holdings. Market analysts suggest that the sustained rally is largely driven by the anticipated surge in electricity demand from AI data centers, which are substantial consumers of power, thus propelling the need for renewable energy sources.
The South Korean government’s commitment to expanding its clean energy capacity has further fueled investor optimism. In June, the government projected that upcoming major industrial projects, such as AI data centers and semiconductor manufacturing clusters, would necessitate an additional 39.7 gigawatts of electricity. Alongside this, the government’s reaffirmation of its strategic objective to boost the country’s renewable energy capacity to 100 gigawatts by the year 2030 has strengthened confidence in the sector.
Adding to the positive outlook for SK Eternix is its ambitious plan to enter into a 2 trillion won renewable energy joint venture with global private equity firm KKR. This partnership is expected to significantly accelerate SK Eternix’s growth trajectory within the clean energy domain, further enhancing its position in the rapidly evolving energy market.