Investors are showing increased interest in SK Eternix, the renewable energy branch of South Korea’s SK Group, as its shares have soared by over 114% in the past month. This surge reflects optimism that the rapid development of artificial intelligence (AI) infrastructure will boost demand for renewable energy. By Friday, the company’s stock reached 80,900 won (approximately US$55.35), a notable rise of 114.6% from a month ago. This comes in stark contrast to the broader market, where the Kospi index dropped 20.9%, and shares of SK hynix, the group’s semiconductor arm, fell 31.2% during the same period.
The stock rally gained momentum this week, with SK Eternix experiencing a 44.9% increase over the last five trading days. Institutional investors have been particularly active, acquiring a net 106.8 billion won in shares, complemented by foreign investors who purchased a net 79 billion won. Analysts suggest that the impressive performance is largely due to expectations that AI data centers, which require significant electricity, will drive sustained demand for renewable energy sources.
The South Korean government’s commitment to expanding clean energy capacity has further bolstered investor confidence. In June, the government estimated that major industrial initiatives, such as AI data centers and semiconductor manufacturing clusters, would generate an additional 39.7 gigawatts in electricity demand. Moreover, it reiterated its aim to increase the nation’s renewable energy capacity to 100 gigawatts by 2030.
Adding to the positive outlook, SK Eternix has announced plans for a 2 trillion won renewable energy joint venture with global private equity firm KKR. This partnership is anticipated to accelerate the company’s growth within the clean energy sector, providing additional momentum to investor sentiment.