AI power infrastructure
Doosan Enerbility
Domestic beneficiary stocks
2026.04.08
The Korean Company Chosen by Elon Musk xAI: A Complete Analysis of Doosan Enerbility’s AI Power Benefits (April 2026)
AI infrastructure investment , which was thought to end with the purchase of GPUs, is now facing electricity supply as the real bottleneck. We examined, using data, context, and a dispassionate perspective, why Elon Musk's xAI acquired gas turbines from the Korean company Doosan Enerbility (034020) and what this deal means for domestic investors. We will now summarize how you can directly ride the AI infrastructure supercycle on the KOSPI without worrying about exchange rates.
1What Happened — Starting with the Contract Timeline
The relationship between Doosan Enerbility and xAI is not a single contract. It materialized through three consecutive orders between January and March 2026, and the nature of each contract differs slightly.
U.S. market research firm SemiAnalysis revealed that "xAI purchased five 380MW gas turbines from Doosan Enerbility," and Elon Musk confirmed the fact by sharing the post on his X account and personally replying "True." The first two units are scheduled for delivery in late 2026.
📎 Source: Money Today Jan. 6, 2026 View Original →
Doosan Enerbility announced through a public disclosure that it has signed a contract to supply seven additional 380MW gas turbines to a U.S. company. While the counterparty was not disclosed due to "business confidentiality," the industry identifies it as xAI. Supply will begin sequentially, with one unit supplied per month starting in May 2029. Including this contract, the company has secured cumulative orders of 12 units in the U.S. and 23 units worldwide.
📎 Source: ZDNet Korea March 6, 2026 View Original → / Munhwa Ilbo March 6, 2026 View Original →
Doosan Enerbility disclosed that it has signed a contract to supply two 370MW steam turbines and two generators. This marks the company's first order for steam turbines in the North American market, and the counterparty remains undisclosed.
📎 Source: CBC News March 18, 2026 View Original →
Purchasing gas turbines and steam turbines together is not merely the purchase of power supply equipment. It involves building a Combined Cycle Gas Turbine (CCGT) system that drives a steam turbine using the waste heat remaining after the gas turbine generates power, resulting in much higher efficiency compared to simple gas power generation. This suggests that xAI is pursuing a strategy of building its own power plants rather than purchasing electricity from power companies.
2Why Gas Turbines in the Age of AI? — Structural Background
The power issue for AI data centers is not a matter of the number of GPUs, but of grid connection latency . According to data from the U.S. Energy Regulatory Commission (FERC), the average waiting period for new grid connections is over five years, and securing power was a key challenge for xAI's Memphis 'Colossus' data center as well.
GE, Siemens, and Mitsubishi already have their production slots fully booked until 2029. For xAI , fast delivery was more important than price, and Doosan Enerbility was able to provide local maintenance services through its Houston, Texas subsidiary, DTS (Doosan Turbomachinery Services). This is the result of three factors aligning: technological prowess, delivery competitiveness, and a local service network . It is appropriate to view this as a case of finding a structural niche rather than engaging in simple price competition.
3Doosan Enerbility Stock Price Outlook — Order Momentum and Target Price Analysis
Just because there is news of a new order does not mean you should buy unconditionally. You must objectively examine the current stock price, target price, and the timing of when earnings will reflect the results.
Doosan Enerbility's orders for 2025 reached 14.728 trillion won, more than double the previous year's figure (7.1314 trillion won) and marking an all-time high. As of the end of the first quarter of 2026, the order backlog stood at 16.1492 trillion won. The company has set a target of securing cumulative orders for 45 gas turbines by 2030 and 105 units by 2038.
📎 Source: Seoul Economic Daily, March 6, 2026 View Original →
The current price of 96,600 won represents an upside of approximately 23% compared to the average target price of 118,833 won. However, it is important to note that the 52-week high was already 112,100 won. The current share price already reflects expectations for new orders to a significant extent . Since revenue recognition for gas turbines begins in 2029, this stock is structured to move based on order momentum and expectations for SMRs rather than short-term earnings. It is advisable to approach this stock with staggered buying rather than a short-term surge.
① Doosan Enerbility is officially keeping the counterparty for the 7th additional contract private. The industry is pointing to xAI, but this is an industry estimate and not confirmed by public disclosure.
② Timing of revenue recognition: Since deliveries will be made sequentially starting from May 2029, direct reflection in earnings for 2026–2028 is limited. There is a possibility that the increase in the stock price has already been reflected.
③ There are also external variables, such as the delay in the 26 trillion won main contract for the Czech nuclear power plant and xAI environmental litigation (possibility of civil litigation by the US NAACP).
4AI Power Infrastructure Value Chain — Domestic Beneficiaries to Watch, Including Doosan Enerbility
If Doosan Enerbility manufactures equipment that generates power, the two companies below manufacture equipment that transmits that power. For electricity to flow into an AI data center, the entire chain of power plant → transformer → switchboard → server is required.
The combined order backlog of the three companies—HD Hyundai Electric, Hyosung Heavy Industries, and LS Electric—surpassed 30 trillion won as of the third quarter of 2025. A supplier-dominated market has formed, with U.S. power grid operators requesting accelerated delivery times even while bearing the tariff burden (up to 20%) themselves. Forecasts indicate that U.S. data center power demand will require an additional 50 GW of capacity by 2030.
📎 Source: EBN News Feb. 9, 2026 View Original →
The current stock price (788,000 won) is already 11% higher than the average analyst target price (709,095 won) . This signals that the market is reflecting a more optimistic outlook on the future than the analyst consensus. While some analysts have suggested target prices as high as 1,140,000 won, careful consideration is required before making additional purchases due to the significant discrepancies.
| event | Value chain role | Current Price / Target Price | Upside |
|---|---|---|---|
| Doosan Energy (034020) xAI Direct Delivery Verification | Power generation (gas turbines, steam turbines) | 96,600 won → 118,833 won | +23% |
| HD Hyundai Electric (267260) Supplying to Big Tech companies such as Meta, Google, and Apple | Power transmission (ultra-high voltage transformer) | 929,000 won → 1,038,680 won | +12% |
| LS Electric (010120) Report on xAI power equipment supply contract | Power distribution (expansion of distribution panels and transformers) | 788,000 won → 709,095 won | -11% |
5 Investment Strategy — How to Approach It
All three stocks are built on the same structural trend of AI power infrastructure, but their current valuation positions and risk profiles differ. Therefore, approaches should be tailored based on risk tolerance.
Core Position — Doosan Energy (034020)
This is the only domestic stock with confirmed direct xAI delivery. There is 23% upside remaining relative to the average target price, and the momentum from the groundbreaking of the dedicated SMR plant (first half of 2026) could act as an additional catalyst in the second half. However, since revenue recognition begins in 2029 , a mid-to-long-term approach is recommended through three staggered purchases . Target weighting: 15–20% of the portfolio.
Satellite Position — HD Hyundai Electric (267260)
Although the current upside is smaller than Doosan Enerbility (+12%), earnings visibility is higher due to an order backlog of 9.9 trillion won and the completion of the second U.S. plant in 2027. It is a stable position with a proven track record of supplying to big tech companies. It is suitable for maintaining a 5–10% hedge weight for diversification purposes when concentrating on Doosan Enerbility.
Watch and Reconsider — LS Electric (010120)
The current stock price is 11% higher than the average analyst target price. While business fundamentals are excellent, chasing the rally at this time presents an unfavorable risk-to-return ratio. We recommend holding off on new entries until an upward revision of the target price consensus is confirmed . For existing holders, now is the time to consider partial profits after the target price is reset.
As Doosan Enerbility and HD Hyundai Electric are KOSPI- listed stocks, they can be traded directly through RP, IRP, and ISA accounts . They pose no exchange rate risk compared to overseas AI stocks and allow you to fully benefit from domestic tax advantages. We recommend investing in your personal account after first reaching the 2 million won tax-free limit for ISA accounts and utilizing pension savings tax deductions.
| Frequently Asked Questions | answer |
|---|---|
| Is the xAI contract an officially confirmed fact? | It is mixed. Musk personally confirmed to X that the 5th contract in January was “True.” The counterparty for the additional 7th contract in March is undisclosed as of the disclosure, and it is an industry estimate that it is xAI. |
| When are orders reflected in earnings? | Deliveries are scheduled to begin in May 2029. Due to the nature of the plant business, it takes several years from order confirmation to manufacturing, delivery, and revenue recognition. The period from 2026 to 2028 is when expectations drive the stock price. |
| Why is SMR important? | It is Doosan Enerbility's future growth engine. Construction of the world's first dedicated SMR plant, worth 806.8 billion won, is scheduled to begin in Changwon in the first half of 2026, and it will undertake contract manufacturing of key equipment for global SMR companies. However, as it is in the early stages of commercialization, policy and regulatory variables persist. |
Conclusion — AI Investment: Now We Must Look Beyond GPUs to the Electric Wire
If the first act of AI investment was semiconductors and the cloud, the second act is power infrastructure. The scene of Elon Musk acquiring gas turbines from the Korean company Doosan Enerbility symbolically demonstrates that this massive flow of capital is expanding into the heavy industry sector.
For domestic investors who find overseas AI stocks burdensome or wish to avoid exchange rate risks, Doosan Enerbility is one of the few points of contact where they can directly ride the AI infrastructure supercycle on the KOSPI. However, investors must approach this with full consideration of the gap of over three years between order placement and earnings recognition, non-disclosure contract counterparties, and the uncertainty surrounding SMR commercialization.
Investing not as a theme without data, but by adding rational interpretation to verified facts . That is how Aleph views AI power infrastructure.
All figures in this article are for informational purposes only and do not constitute investment advice . Stock prices and target prices are based on early April 2026 and are subject to change thereafter. All investment decisions and responsibilities rest with the individual, and consulting with a professional financial advisor before making any significant decisions is recommended.
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In the next post, we plan to cover “SMR Supercycle — Can Doosan Enerbility Become the 'TSMC of Nuclear Power Plants'?”
How this content was produced
Aleph's research AI agent assisted with collecting and analyzing public data, creating charts and visuals, and structuring the draft. Davar personally reviewed and edited the sources, figures, reasoning, and final conclusions.
This content is for informational purposes only and is not personalized investment advice or an individual stock recommendation. Read the full disclaimer
Davar
Davar builds and operates Aleph's research AI agent and writes and reviews analysis on macroeconomic developments and AI industry trends.
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