After semiconductors, power infrastructure emerges as next AI investment theme

The growing spread of artificial intelligence is elevating the importance of power infrastructure. As global AI data center construction accelerates, investment is rapidly expanding across the entire power infrastructure chain — from power generation facilities and transmission and distribution networks to transformers. On the domestic stock market, power infrastructure has emerged as a new beneficiary of AI investment, drawing rising attention to cable, transformer and transmission companies.

The RISE AI Power Infrastructure ETF posted a three-month return of 45.81% as of Wednesday, fund evaluator FnGuide said Thursday. Its one-week return reached 19.46%.

The RISE AI Power Infrastructure ETF is an exchange-traded fund investing across the domestic power value chain — the core infrastructure of the AI era — covering power cables, transformers, transmission and distribution equipment, power generation facilities and electrical devices.

The fund tracks the KRX-Akros AI Power Infrastructure Index and invests in 15 stocks selected primarily for their thematic fit, with a cap on individual holding weightings to reduce concentration risk.

Major holdings include Gaon Cable (22.28%), LS Electric (8.39%), Sanil Electric (7.41%), Hyosung Heavy Industries (6.66%), Seojin System (6.04%), HD Hyundai Electric (5.90%), Taihan Cable & Solution (5.80%), LS Eco Energy (5.26%), Cheryong Electric (5.17%) and Iljin Electric (5.06%).

A notable feature of the fund's design is its diversified exposure to leading domestic companies expected to benefit from AI data center construction — spanning power generation, transmission, distribution and electrical devices — rather than concentrating on any single power equipment firm. This structure allows investors to participate in the AI power supercycle while reducing the risk of individual stock picks. The fund also applies a low annual management fee of 0.2%, easing the cost burden for long-term investors.

"As the government's three major mega-projects — AI data centers, physical AI and semiconductors — push power infrastructure back into the spotlight, key RISE AI Power Infrastructure holdings such as Gaon Cable, LS Electric and Hyosung Heavy Industries are showing standout share price performance," said Yuk Dong-hwi, head of ETF product marketing at KB Asset Management. "Backed by national-level capital expenditure and the expansion of the global AI market, the order growth of domestic power infrastructure companies will continue."

An ETF that raises its weighting in Samsung Electronics and SK hynix — direct beneficiaries of AI investment — has also been drawing steady interest. KB Asset Management said June 18 that net assets in its RISE Samsung Electronics SK hynix Bond Mixed 50 ETF had surpassed 4 trillion won ($2.57 billion). The fund allocates 25% each to Samsung Electronics and SK hynix, with the remaining 50% invested in high-quality bonds such as short-term government securities. Its three-month return stands at 49.71%, with an annual management fee of 0.01%.