Which Stock Is Quietly Benefiting from the U.S. Blue Wave? [Weekend Money]

"Fuel Cells" Set to See Rising Demand for On-Site Power Generation
VINATech and T&E Korea, Suppliers to U.S. Firm Bloom Energy, in Focus

Domestic companies in the value chain of Bloom Energy, a solid oxide fuel cell (SOFC) company, have been identified as potential beneficiaries of the so-called "Blue Wave" seen in the U.S. midterm elections. VINATech and T&E Korea are expected to benefit the most from Bloom Energy's growth.

Korea Investment & Securities made the assessment in its report, "Blue Wave Beneficiaries: Bloom Energy and Its Peers," published after the midterm elections. It named VINATech as its top pick among domestic value-chain companies.

"The Blue Wave in the U.S. midterm elections will make data center construction more difficult," said Kim Geonwoo, an analyst at Korea Investment & Securities. "Now that the short-term event has passed, discussions on how to respond to data center regulations will come to the fore."

In Texas, where large-scale data center investments are being made by companies such as Google, Meta and OpenAI, Democratic candidate Gina Hinojosa defeated incumbent Republican Governor Greg Abbott in the gubernatorial election on November 3. Hinojosa has pointed to local water use, rising electricity prices and the lack of a regulatory framework for data centers as problems.

By December 10, the Electric Reliability Council of Texas (ERCOT) and the Texas Water Development Board (TWDB) are expected to release audit findings and final reports on data center permitting. "The key issues in the regulatory overhaul are likely to be restrictions on local water use and accountability for rising electricity prices," Kim said. "Bloom Energy's fuel cells are expected to expand their market in the future because they can generate power in a way that addresses these regulations."

"Fuel cells generate electricity through electrochemical reactions without burning fuel. They do not require the cooling towers needed at conventional power plants, and consume only a small amount of water during the reforming process," he said. "Because fuel cells can be installed on data center sites to generate power onsite, without relying on the wider electric grid, they also do not affect local electricity prices."

Accordingly, VINATech and T&E Korea are expected to benefit the most among domestic value-chain companies as Bloom Energy grows. VINATech was named the top pick. "In October, VINATech announced a series of large-scale supply contracts for supercapacitors for Bloom Energy. The two contracts total KRW 240 billion, about three times its full-year revenue in 2025," Kim said.

His second choice was T&E Korea, a turbomachinery manufacturer whose main product is air blowers used in SOFC systems. "As the fuel cell market expands, the company is expected to post annual revenue of KRW 108 billion and operating profit of KRW 21.4 billion in 2027," Kim said. "However, there is a risk of share-price volatility due to potential selling pressure, as 1.78 million shares will be released from their mandatory holding period one month after its listing on October 29, and another 1.47 million shares two months after listing."

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