[Click e-Stock] "SK Telecom Holds Two Core Pillars in AI Infrastructure Business... Target Price Raised"

KB Securities Raises Target Price for SK Telecom to 150,000 Won

On June 16, KB Securities raised its target price for SK Telecom from 130,000 won to 150,000 won while maintaining its "Buy" investment rating, citing the company's two core pillars in the AI infrastructure business: artificial intelligence data centers (AIDC) and GPU-as-a-Service (GPUaaS).

SK Telecom has been operating its GPUaaS business since 2024. Expectations for the business have surged following the recent announcement by Jensen Huang, CEO of Nvidia, during his visit to Korea, regarding a partnership to build and operate a gigawatt-scale AI factory (GPUaaS). Researcher Kim commented, "Based on the vision of a 1GW-scale AI factory announced by Naver, SK Telecom's business model could expand to 20 trillion won in revenue and 4 trillion won in operating profit. Even from the perspective that GPUaaS needs to secure long-term customers, the ability to quickly stabilize the business through initial internal demand from affiliated companies is a significant strength."

The AI data center business, which will be fully operational starting next year, will help reduce the uncertainty risks associated with GPUaaS. According to KB Securities, SK Telecom's progress is faster than other operators because it already has confirmed tenants for its AI data centers. Furthermore, due to the nature of the business, long-term contracts include escalation clauses that allow for continuous price increases.

Researcher Kim stated, "SK Telecom's AI data center business will begin its full-scale ramp-up in the second half of 2027, with phased openings continuing through 2029. Assuming a price premium over conventional data centers, operating profit in 2031 is expected to be 800 billion won higher." He further emphasized, "Even excluding the GPUaaS business, the existence of another high-growth option within the AI infrastructure business is a compelling investment point."

In addition, Researcher Kim noted, "The full-fledged growth of SK Broadband's data center business and improved profitability as the company incorporates AI into its core business processes remain valid investment points."

This content was produced with the assistance of AI translation services.