NHN Corporation (NHN) surges 27% on data-center and earnings tailwinds...gains for fifth straight trading day [Stock NOW]

[Financial News]  NHN shares are surging more than 27% intraday. Investor sentiment appears to have improved significantly after the company reported third-quarter results that exceeded market expectations and confirmed growth in its artificial intelligence (AI) infrastructure business.
NHN’s five-day winning streak also stands out, coming even as the South Korean stock market has recently been highly volatile.
According to the Korea Exchange, as of 9:46 a.m. on the 10th, NHN was trading at 75,900 won, up 16,300 won (27.35%) from the previous trading day. It reached as high as 77,400 won intraday, bringing its gain to 29.87%. The stock has risen for five consecutive trading days, from the 4th through today.
Improved earnings are cited as the direct driver of the share-price rise. NHN said its consolidated revenue for the third quarter of this year was 758.3 billion won, up 21.2% from the same period a year earlier. Operating profit rose 112.6% to 58.8 billion won, about 9% above market consensus. Net income also increased 115.8% to 38.9 billion won.
NHN Cloud’s growth was particularly strong. Its third-quarter revenue increased 75.5% from the same period a year earlier. This reflected revenue from businesses including “Factory X Seoul,” its AI graphics processing unit (GPU) management business. Expectations for growth are rising as expanding demand for AI infrastructure translates into actual business results.
Expectations for increased investment in overseas data centers are also underpinning NHN’s consecutive gains amid heightened volatility in the South Korean stock market.
Following the U.S. midterm elections, Democrats’ control of Congress has brought policy uncertainty around data-center regulation and power infrastructure to the fore, prompting speculation that big tech companies may expand data-center construction outside the United States. Domestic cloud and AI infrastructure companies are consequently drawing attention as alternatives.
Buying has concentrated in NHN as improved earnings coincide with expectations for growth in its AI infrastructure business. However, given the sharp rise in its share price over a short period, NHN will likely need to demonstrate sustained growth in its cloud business and improved profitability through its results for the rally to continue.

[email protected] Kang Jung-mo Reporter