Doosan Fuel Cell shares surged more than 20% in early trading following news of its entry into the U.S. artificial intelligence (AI) data center power market. The increase in demand for on-site power generation in the U.S. has sparked investor optimism about potential additional orders and improved performance next year.
According to the Korea Exchange, as of 10:02 a.m. on September 7, Doosan Fuel Cell's stock was trading at 53,600 won, up 9,750 won (22.23%) from the previous trading day. The stock opened at 45,650 won and briefly soared to 55,000 won in early trading.
The surge in stock price is attributed to the announcement that Doosan's U.S. subsidiary, HyAxiom, will supply fuel cells for AI data centers, marking its first foray into the U.S. power market.
Earlier, Doosan Fuel Cell disclosed that it signed a contract with HyAxiom to supply phosphoric acid fuel cells (PAFC) worth 501.4 billion won on September 2. The products will be delivered to HyAxiom in phases from the second half of this year through the first half of 2028, and HyAxiom will supply them to AI data centers in the U.S.
Analysts have also expressed positive evaluations. Jeong Yeon-seung, a researcher at NH Investment & Securities, noted in a report that "considering the absolute supply scale, it is highly likely that these will be used as primary power sources rather than auxiliary power for data centers," adding that there is a high possibility of additional PAFC orders due to the increasing demand for on-site power generation in the U.S.
He also mentioned that while there have been financial burdens due to annual operating losses and increased working capital stemming from stack replacement costs and low operating rates for previously supplied fuel cells, production is expected to ramp up significantly next year, potentially easing fixed cost burdens and leading to a return to operating profit.
* This article has been translated by AI.
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