SKM Joins SK hynix & Penguin Solutions for AI Data Center Innovation

SK Telecom Co. SKM recently inked a deal with SK hynix and Penguin Solutions PENG to mutually foster the research, development and business expansion of artificial intelligence data center (AIDC) solutions. Announced during CES 2025, a globally acclaimed technology event held in Las Vegas, NV, the initiative is set to bring significant advancements in AI infrastructure.The partnership stems from an investment agreement forged in July 2024, wherein SK Telecom committed $200 million to Penguin Solutions. Based on this agreement, the three companies built a task force to explore synergies and leverage their complementary strengths to drive innovation in AIDC solutions. Through this collaboration, the companies aim to explore potential business opportunities in the Asia-Pacific and Middle East markets, including Japan. By harnessing their combined expertise in semiconductors, energy, memory technology and AI, the joined forces aim to develop a globally competitive AI infrastructure.A key aspect of the collaboration is the development and commercialization of a comprehensive full-stack software solution. This includes software capabilities essential for building and operating AIDCs efficiently. Also, SK hynix and Penguin Solutions are likely to team up on next-generation data center memory technology, addressing challenges in power efficiency and heat dissipation.SKM's Unique AI Initiatives Propel Top-Line ExpansionAs the demand for AI-powered solutions continues to surge, SKM is well-positioned to enhance operational efficiency and unlock new opportunities in the global AI landscape. The company continues to drive technological strides and expand its footprint by making lucrative investments in the emerging AI market. In December 2024, it invested $3 million in Twelve Labs, a top video understanding company. The initiative aims to bolster multimodal AI applications across a broad range of industries, particularly security, public safety and customer interaction.Also, in November 2024, SKM successfully concluded its AI Customer Service Support System beta service, representing a key advancement in its customer service technology. SKM partnered with global LLM leaders to develop an advanced AI system for telecom. Over a year, they restructured their knowledge base, improved models and created training data with input from customer service experts. Launched in mid-October, the system, powered by SK Telecom's specialized LLMs, has shown strong performance.In the last reported quarter, SKM reported consolidated revenues of KRW 4.5321 trillion, with a 2.9% year-over-year increase, driven by robust growth in roaming services and the enterprise sector. Operating income grew 7.1% to KRW 533.3 billion, aided by improved efficiency through AI integration and strengthened fundamentals from operational improvements.SKM’s Zacks Rank & Stock Price PerformanceSK Telecom currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 2.8% in the past year against the sub-industry's decline of 12.1%.Image Source: Zacks Investment ResearchStocks to ConsiderSome better-ranked stocks from the broader technology space are InterDigital, Inc. IDCC, and Qualcomm Incorporated QCOM. IDCC presently sports a Zacks Rank #1 (Strong Buy), while QCOM carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. It has a long-term growth expectation of 17.44%.Qualcomm is well-positioned to meet its long-term revenue targets driven by solid 5G traction, greater visibility and a diversified revenue stream. It is increasingly focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor company for the intelligent edge. Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report QUALCOMM Incorporated (QCOM): Free Stock Analysis Report SK Telecom Co., Ltd. (SKM): Free Stock Analysis Report InterDigital, Inc. (IDCC): Free Stock Analysis Report Penguin Solutions, Inc. (PENG): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks