Samsung SDS Appears Better Positioned than Peers to Capitalize on AI Demand

Dow Jones10-16

0436 GMT - Samsung SDS appears better positioned than its domestic information-technology peers to capitalize on artificial-intelligence demand, Nomura analyst Angela Hong says. The Samsung Group affiliate's planned AI infrastructure capacity could be supported by computing demand from its parent conglomerate, reducing its reliance on large outside customers, Hong writes in a note. External enterprise demand, including third-party data center design-build-operate projects, could provide additional growth opportunities, she says. The analyst points to the company's plan to expand its AI data-center capacity to 230 megawatts from 110MW by 2029 and more than 800MW--including 500MW from DBO projects--by 2031. Nomura initiates coverage of the stock with a buy rating and 250,000 won target price. Shares are up 3.7% at 201,500 won.

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