AI Data Centers and Nuclear Power Emerge as New Growth Drivers; Construction Stocks Rally [Stocks NOW]

[Financial News] The investment case for construction stocks, once confined to the housing and real estate markets, is shifting toward major infrastructure projects such as artificial intelligence (AI) data centers and nuclear power plants.
As of 9:52 a.m. on the 28th, the construction sector index on the Korea Exchange Main Board stood at 171.99, up 7.62 points, or 4.64%, from the previous trading day. It posted the largest gain among the major sectors of the KOSPI Composite Index. The increase, which had been in the 3% range early in the session, expanded to the 4% range, signaling stronger buying across construction stocks.
The construction sector posted the steepest gain in the domestic stock market on expectations that rising power demand driven by the expansion of AI will lead to increased investment in data center construction and power-generation infrastructure.
GS Engineering & Construction rose 4.05% to 36000 won, while Hyundai Engineering and Construction gained 3.06% to 124800 won. Namkwang Construction rose 2.61%, Hanshin Construction 2.12%, Hyundai Engineering and Construction preferred shares 2.07%, Kumho Engineering & Construction preferred shares 1.91%, Taeyoung E&C 1.85%, and Dongbu Construction 1.69%, among others.
Market participants are paying particular attention to the emergence of AI data centers as a new growth market for the construction industry.
Demand for data centers is growing as AI services expand. Because data centers require a massive and stable power supply around the clock, they could also drive investment in power infrastructure, including power plants and transmission networks.
Kim Se-ryeon, a researcher at LS Securities, analyzed, "Valuation expectations for construction stocks need to be raised, particularly around AI data centers and nuclear power plants."
Nuclear power is also emerging as a new growth avenue for the construction industry. As AI data centers drive up power demand, the importance of nuclear power as a stable energy source is gaining prominence. Domestic construction companies are also pursuing expanded businesses related to nuclear power plants and small modular reactors (SMRs).

[email protected] Kang Jung-mo Reporter