00 005090.KS SGC Energy Co., Ltd. Loading... : Bullish and Bearish Analyst Opinions

With US neo-cloud companies proving their profitability, Korean companies directly building data centers (SK Telecom, NAVER, NHN, SGC Energy, GNC Energy) are attractive. Unlike US startups, they already generate strong cash flows and should be accumulated on dips.

US neocloud earnings show AI data center demand is profitable, and Korean companies that are actually building or operating data centers or colocation infrastructure - SK Telecom, NAVER, NHN, SGC Energy, GS - are profitable incumbents that can fund investments without the stress of US loss-making neoclouds. Korean data center assets should be relatively easy to monetize if US data center buildout remains constrained. He views these names as long-term holdings, buying at dips rather than chasing.

Energy infrastructure and power cable stocks are experiencing fast rotation and strong earnings. LS Electric is preferred for its faster lead times in distribution transformers, while Sanil and Iljin Electric benefit from expanding North American exposure.

Data center theme stocks have been resilient, not giving back much of prior gains. A second mega-project inspection meeting on Monday and ongoing data center demand narrative support the sector. Watch for pullbacks to add exposure, with KOSPI names like SK Eternix, GS Construction, SGC Energy, and Naver tied to the theme.

AI data center construction in Korea is facing a power supply bottleneck that can only be solved by LNG or renewables, creating strong interest in power infrastructure and renewable energy stocks. The theme is gaining momentum as SK Group and GS Group announce large-scale data center projects. Investors should definitely monitor this theme, although short-term momentum may fluctuate.

SCC Energy is expected to benefit from the expansion of data centers, with its own data center project in Gunsan providing a similar revenue catalyst.