Shares of SK Eternix, a key player in South Korea’s renewable energy sector under SK Group, have seen an impressive rise of over 114% in the past month. This surge is largely fueled by optimism among investors that the growing infrastructure for artificial intelligence (AI) will boost the demand for renewable energy significantly. The company’s stock closed at 80,900 won, equivalent to US$55.35, marking a steep increase from a month ago, even as the Kospi index dropped 20.9% and SK hynix, SK Group’s semiconductor giant, saw a 31.2% decline.
The rally in SK Eternix shares gained momentum this week, with a 44.9% increase over the last five trading days. Institutional investors have acquired shares worth a net 106.8 billion won, while foreign investors purchased a net 79 billion won. Analysts suggest this strong performance is driven by the anticipation that AI data centers, which consume large amounts of electricity, will create a sustained demand for renewable energy. Additionally, the South Korean government’s commitment to expanding clean energy capacity has bolstered investor confidence.
In a strategic move, the government announced in June that major industrial projects, including AI data centers and semiconductor manufacturing clusters, are expected to increase electricity demand by an additional 39.7 gigawatts. The government also reiterated its objective to expand the nation’s renewable energy capacity to 100 gigawatts by 2030, aligning with the growing need for sustainable power solutions.
Investor sentiment has been further buoyed by SK Eternix’s recent announcement of a planned 2 trillion won renewable energy joint venture with global private equity firm KKR. This partnership is anticipated to accelerate SK Eternix’s growth trajectory in the clean energy market, reinforcing its position as a leading player in the industry.