SK Eternix, the renewable energy division of South Korea’s SK Group, has seen its stock price soar by over 114% in the past month. This dramatic increase is largely attributed to growing investor confidence that the expansion of artificial intelligence (AI) infrastructure will lead to a higher demand for renewable energy sources. On Friday, the company’s shares closed at 80,900 won (approximately US$55.35), reflecting a 114.6% rise from a month ago. In contrast, the benchmark Kospi index experienced a decline of 20.9%, and SK hynix, SK Group’s main semiconductor branch, saw its shares drop by 31.2% during the same period.
The stock rally of SK Eternix gained momentum this week, with a 44.9% increase over the last five trading days alone. Institutional investors showed significant interest, purchasing a net 106.8 billion won in shares, while foreign investors acquired a net 79 billion won. Analysts believe that this strong performance is fueled by expectations that AI data centers, which consume large amounts of electricity, will bolster long-term demand for renewable energy. Furthermore, the South Korean government’s initiatives to expand clean energy capabilities have bolstered investor confidence.
In June, South Korea’s government projected that major industrial developments, including AI data centers and semiconductor manufacturing clusters, would necessitate an additional 39.7 gigawatts of electricity. The government also reinforced its commitment to increasing the nation’s renewable energy capacity to 100 gigawatts by 2030. These projections and commitments have played a significant role in enhancing the market’s outlook on renewable energy investments.
Further boosting investor sentiment is SK Eternix’s planned collaboration with global private equity firm KKR. The two entities are set to embark on a 2 trillion won joint venture in renewable energy, which is anticipated to expedite SK Eternix’s growth within the clean energy sector. This partnership is expected to provide an additional push to the company’s ongoing efforts to meet the rising demand for sustainable energy solutions.