NHN announced strong third-quarter earnings that exceeded market expectations, leading to a surge in its stock price. The optimism surrounding the expansion of its artificial intelligence (AI) data center business is believed to have contributed to the rise.
According to the Korea Exchange, as of 9:36 a.m. on November 10, NHN's shares were trading at 77,400 won, up 29.87% from the previous trading day. The stock opened at 69,000 won, a 15.77% increase, and quickly reached its upper limit.
On the same day, NHN reported that its consolidated operating profit for the third quarter reached 58.8 billion won, a 112.7% increase compared to the same period last year. Net profit for the same period rose to 38.9 billion won, up 115.8%. Notably, the operating profit surpassed market expectations of 53.7 billion won by 9.4%.
Recently, NHN's stock has been buoyed by expectations surrounding the expansion of its AI data center business. Concerns over stricter regulations on data centers in the United States have led to positive sentiment among domestic data center operators, who may benefit from these developments.
To expand its AI infrastructure business, NHN is accelerating the construction of data centers. The company plans to operate a total of 100 megawatts (MW) of AI data centers by the end of 2027, including existing capacities.
Specifically, NHN plans to launch data centers in the Gasan Digital Complex in Seoul and in Gajwa-dong, Incheon, in the first half of next year. Additionally, the company is moving forward with plans to build two data centers in Jangseong, Jeollanam-do, and one in Pohang, Gyeongsangbuk-do, to further strengthen its AI infrastructure.
The market is closely watching whether this improvement in earnings and the expansion of the data center business will serve as a growth driver for NHN in the future.
* This article has been translated by AI.
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