NHN is experiencing a surge of over 6% in its stock price, driven by expectations surrounding the expansion of its artificial intelligence (AI) and cloud businesses. This increase follows the announcement that its subsidiary, NHN Cloud, will long-term lease a 20-megawatt (MW) power capacity at its Pohang data center to enhance its AI graphics processing unit (GPU) infrastructure.
As of 2:20 PM on the Korea Exchange, NHN shares were trading at 74,000 won, up 4,300 won (6.17%) from the previous trading day.
On August 28, NHN announced that NHN Cloud had signed a lease agreement with AI Factory Pohang PFV to expand its AI GPU business. The lease covers a space and ancillary facilities equivalent to 20 MW within the data center, with a lease term of 60 months starting from the commencement date.
Through this contract, NHN Cloud aims to secure data center infrastructure early and respond to the growing demand for GPU as a service (GPUaaS) and cloud services.
In particular, NHN Cloud plans to further enhance its AI and cloud infrastructure competitiveness by securing an additional 30 MW of data center infrastructure by the end of 2027. The acquisition of the Pohang data center is part of this strategy. However, the specifics regarding the scale, method, and timing of additional acquisitions beyond the Pohang data center have yet to be determined.
Market analysts believe that the key to improving performance will not just be the acquisition of additional infrastructure but how quickly the company can convert future commercial GPU demand into revenue.
Kim So-hye, a researcher at Hanwha Investment & Securities, stated, "While the short-term stock price increase is somewhat steep, the value of the cloud business, which has not been fully reflected in the stock price, is being reassessed, leading to a reduction in the discount. If profitability is confirmed through quarterly results in the second half of the year, the rationale for separately evaluating the technology division will become even clearer."
* This article has been translated by AI.
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