In early trading on the 24th, shares in the electrical equipment sector were strong. Buying appears to be concentrating in electrical equipment-related stocks on the back of increased demand for expanding U.S. artificial intelligence (AI) data centers and power infrastructure.
As of 10:12 a.m., Daewon Cable preferred shares were trading at 6,830 won, up 1,500 won (28.14%) from the previous session.
At the same time, HD Hyundai Electric was also up 168,000 won (14.88%) from the previous trading day to 1,297,000 won, and Daewon Cable was up 840 won (10.32%) to 8,980 won.
Taihan Cable & Solution (7.83%), Hyosung Heavy Industries (7.77%), Iljin Electric (7.30%), Sanil Electric (6.38%), Semyung Electric Machinery (5.58%), and LS Electric (5.53%) were also rising.
The broad gains in electrical equipment stocks appear to be driven by the United States moving to expand AI infrastructure. Buying is believed to be flowing into the sector on expectations that electrical equipment that builds ultra-high-voltage transformers and power distribution facilities for data centers will benefit.
Son Hyeon-jeong, an analyst at Yuanta Securities Korea, said, "Growth in gigawatt (GW)-level power demand for AI data centers and the resulting expansion of transmission investments centered on ultra-high voltage continues," adding, "While order growth centered on North America continues, demand focused on long lead times is forming in new markets such as Europe."
Son said, "For 765kV ultra-high-voltage transformers, full-scale orders are expected to begin this year, representing high value-added orders that go beyond simple volume growth to include ASP increases."