On the 6th, wire and cable stocks were strong in early trading. As investment in artificial intelligence (AI) expands and electricity demand rises, investment appetite appears to be broadening beyond semiconductors to related infrastructure sectors.
As of 9:46 a.m., Gaon Cable on the Korea Exchange was trading at 345,000 won, up 56,500 won (19.58%) from the previous session. At the same time, Daewon Cable was up 1,620 won (9.34%) at 18,970 won. Taihan Cable & Solution (7.74%) was also gaining.
Gaon Cable climbed to 350,000 won early in the session, hitting a record high. Taihan Cable & Solution (67,000 won) and Daewon Cable (20,300 won) also set intraday record highs.
A surge in electricity demand stemming from the expansion of AI data centers has recently emerged as a key investment theme. Because AI computation requires far more power than conventional data centers, analysts say demand could rise across transformers, transmission and distribution facilities, cables, and power equipment overall.
Earlier, seven big tech companies, including Alphabet, Amazon, and Microsoft (MS), also disclosed plans to ramp up large-scale AI-related capital expenditures (CAPEX) in their earnings announcements. Brokerages said the results generally proved the profitability of these companies' AI businesses, boosting expectations that the AI investment cycle will continue.
Kim Yong-gu, an analyst at Yuanta Securities Korea, said, "The warmth of the recent global AI capital expenditure supercycle is steadily spreading across related corporations such as memory and storage," and added, "For the time being, we expect supply-demand concentration to continue around the AI value chain, where fundamentals have been verified."