HANARO ETF Report Released... Nuclear Power Highlighted as AI Energy Solution

NH-Amundi Asset Management announced on September 10 that it has published the "September HANARO ETF Monthly Report."

The September report analyzes the trend of nuclear power being highlighted as a strategic asset amid the spread of artificial intelligence (AI) and global energy security concerns. It also presents the outlook that domestic nuclear power companies could benefit from this trend.

NH-Amundi Asset Management explained that the major technology companies known as the "Magnificent 7 (M7)" have continued to make significant investments in expanding data centers in the first half of the year. The company emphasized that demand for power infrastructure is surging, and nuclear power is emerging as a key alternative for energy supply.

Companies such as Amazon, Google, and Microsoft are entering into power purchase agreements or making investments in small modular reactors (SMRs) for these reasons. Amazon is collaborating with X-energy, while Google is working with Kairos Power. Notably, X-energy is a company in which Doosan Enerbility holds a stake, suggesting that global big tech investments in nuclear power could create both direct and indirect opportunities for domestic companies.

The report also mentioned the contract controversy between "Team Korea," led by Korea Hydro & Nuclear Power, and Westinghouse regarding the Czech nuclear power project. While there are concerns that new order activities may be restricted in some regions, the possibility of establishing a joint venture (JV) between the two companies has been raised, which could serve as a breakthrough.

With the Czech Republic choosing Team Korea over Westinghouse and Electricite de France (EDF), the competitiveness of domestic companies has been demonstrated. If the JV is established, the United States could continue building nuclear power plants in strategic regions such as Eastern Europe and maintain its dominance, while domestic companies could resolve intellectual property disputes and secure a variety of new orders, resulting in a mutually complementary structure.

NH-Amundi Asset Management suggested the "HANARO Nuclear Power iSelect ETF" as a product that can capture the global expansion benefits of domestic nuclear power companies. This ETF is composed of leading domestic nuclear power and power infrastructure companies such as Korea Electric Power Corporation, Doosan Enerbility, and HD Hyundai Electric, enabling broad investment in companies expected to benefit from the growth of the global nuclear power industry.

Kim Seungcheol, Head of ETF Investment at NH-Amundi Asset Management, said, "The global standing of domestic nuclear power companies is expected to grow further in the upcoming era of the nuclear renaissance," adding, "Through the HANARO Nuclear Power iSelect ETF, investors can participate in the long-term growth expected from domestic nuclear power-themed investments."

NH-Amundi Asset Management provides the "HANARO ETF Monthly Report" at the beginning of each month through the HANARO ETF website, summarizing major market issues and ETF investment ideas for investors.

This content was produced with the assistance of AI translation services.