Samsung SDI to Benefit from AI Data Center Exposure Through 2027

Dow Jones10-14 10:41

0241 GMT - Samsung SDI is poised to benefit from its exposure to the artificial-intelligence data center market through 2027, Nomura's Cindy Park and Dongmin Lee say. Demand associated with AIDC for energy storage systems, battery backup units and uninterruptible power supply batteries could help the South Korean battery cell maker boost revenue by 40% in 2026 and by 65% in 2027, the analysts write in a note. They also expect AIDC-related demand to help the company's earnings before interest and taxes grow 150% this year and 95% next year. Nomura maintains its buy rating on the stock but cuts the target price by 12% to 790,000 won, citing lower valuations for the company's battery and electronic-material businesses. Shares are recently 6.0% higher at 594,000 won.

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