NewKerala.com

Key Points

Power equipment stocks in Seoul saw a significant boost this morning. The rally was directly triggered by Nvidia's announcement of a massive $100 billion investment plan for AI data centers. HD Hyundai Electric led the gains, hitting a fresh 52-week high, while LS Electric and Hyosung Heavy Industries also climbed. Separately, Samsung Electronics reached a key market capitalization milestone, fueled by positive analyst sentiment.

Key Points: Nvidia AI Data Center Plan Boosts HD Hyundai Electric Stocks

  • Nvidia plans a massive $100 billion investment in OpenAI for AI infrastructure
  • The project includes building a 10-gigawatt AI data center powered by Nvidia chips
  • HD Hyundai Electric shares hit a 52-week high, buoyed by the news and a major US contract
  • Samsung Electronics also rose, with its market cap topping 500 trillion won
2 min read

Power equipment stocks climb on Nvidia data center investment plan

HD Hyundai Electric and LS Electric shares surge after Nvidia's $100 billion OpenAI investment for a 10GW AI data center, equivalent to 10 nuclear plants.

"The capacity is equivalent to 10 nuclear power plants. - Maeil Business Newspaper"

Seoul, September 23

The stocks of power equipment makers rose Tuesday morning following Nvidia Corp.'s announcement of a massive investment plan for data centers, as per a report by Pulse, the English service of Maeil Business Newspaper Korea.

HD Hyundai Electric Co. shares were trading at 618,000 won (USD 445) as of 9:05 a.m., up 5.64 percent from the previous session.

The stock touched 624,000 won, a 6.67 per cent gain and a fresh 52-week high earlier in the session. LS Electric Co. also gained 3.07 per cent and Hyosung Heavy Industries Corp. 2.56 percent.

The rally followed Nvidia's announcement that it will invest up to USD 100 billion in OpenAI to build large-scale artificial intelligence (AI) infrastructure.

The plan includes supporting the construction of a 10-gigawatt (GW) data center powered by Nvidia's advanced AI chips to train and deploy OpenAI's models. The capacity is equivalent to 10 nuclear power plants.

HD Hyundai Electric's stock was further buoyed by news that it won a 277.8 billion won contract in the U.S. to supply 24 units of 765-kilovolt (kV) ultra-high-voltage transformers and reactors.

Separately, Samsung Electronics Co. surpassed 85,000 won in early trading, hitting 85,900 won at one point to mark a new 52-week high.

By 9:41 a.m., the stock was up 0.96 per cent at 84,300 won. Its market capitalisation topped 500 trillion won for the first time since July 31 last year, while in pre-market trading on Nextrade, shares briefly touched 91,000 won.

Analysts have since raised their target prices to above 100,000 won.

Shares of HD Hyundai Electric finished at 594,000 won, up 1.54 per cent from the previous session. LS Electric ended at 293,000 won and Hyosung Heavy Industries at 1,397,000 won. Samsung Electronics rose 1.44 per cent to close at 84,700 won.

- ANI

Share this article:

Reader Comments

P
Priya S
Interesting to see how global tech investments are driving traditional manufacturing stocks. Hope Indian power sector companies are watching this trend closely. We need more such forward-thinking investments in India too.
R
Rohit P
10 GW data center capacity is massive! Equivalent to 10 nuclear plants? That's mind-boggling. This shows the enormous power requirements of AI infrastructure. Indian companies should start developing specialized power solutions for data centers.
S
Sarah B
While the stock gains are impressive, I hope these companies are also investing in sustainable power solutions. Data centers consume enormous energy - we need green alternatives to power this AI revolution responsibly.
V
Vikram M
HD Hyundai winning that US contract shows global competitiveness. Indian manufacturers should aim for such international orders. Our Make in India initiative could really benefit from this data center infrastructure wave.
M
Michael C
The correlation between AI infrastructure and power equipment demand is becoming clearer. This could be a long-term trend rather than just a short-term spike. Good time to research power sector stocks in emerging markets.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50