KT Could Benefit from Disciplined Investment in AI Infrastructure

Dow Jones10-15

0421 GMT - South Korean telecom giant KT could benefit from its disciplined investment in artificial intelligence infrastructure, Nomura's Angela Hong says. KT aims to supply 1 gigawatt of AI data center capacity by 2031, compared with a 15GW target set by local rival SK Telecom, the analyst notes. KT's supply footprint includes third-party design-build-operate projects, allowing it to generate income without owning every facility, Hong says. Still, KT's established data center operations, enterprise relationships and connectivity should provide opportunities to monetize AI demand, she adds. Nomura upgrades the stock to buy from neutral and raises its target price to 63,000 won from 62,000 won, citing its optimistic earnings forecast and KT's disciplined AI expansion. Shares are 0.4% higher at 50,100 won.

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