Doosan Fuel Cell has experienced a dramatic surge of over 20% in its stock price. This spike follows a significant fuel cell order for U.S. data centers and upgraded investment recommendations from securities firms.

As of 9:54 a.m. (Korean time) on Monday, Doosan Fuel Cell's shares were trading at 54,500 KRW (about 40.49 USD), up 10,650 KRW (about 7.91 USD) or 24.29% from the previous day's close. The stock opened at 45,650 KRW (about 33.91 USD) and gained momentum throughout the morning, reaching a high of 55,000 KRW (about 40.86 USD) during the trading session.

NH Investment & Securities has revised its stance on Doosan Fuel Cell, upgrading its recommendation from Hold to Buy. The firm also significantly increased its target price by 70.6%, from 34,000 KRW (about 25.26 USD) to 58,000 KRW (about 43.09 USD). This bullish shift reflects growing confidence in Doosan Fuel Cell's long-term growth prospects, largely due to the recent major fuel cell order for U.S. data centers.

Through its U.S. affiliate, HyAxiom, Doosan Fuel Cell has secured a substantial contract worth 501.4 billion KRW (about 372 million USD) for the supply of phosphoric acid fuel cells (PAFC). While the identity of the end customer remains undisclosed, industry sources indicate that the fuel cells are destined for a U.S. data center.

NH Investment & Securities analyst Jeong Yeon-seung estimates the order size at approximately 140 megawatts (MW), far exceeding initial projections of 50 MW. Given the scale of this supply agreement, Jeong suggests that these fuel cells are likely to serve as the primary power source for the data center, rather than merely providing auxiliary power.

Jeong emphasized the significance of this deal, stating that this order demonstrates that PAFC technology, despite its relatively lower power generation efficiency, can successfully penetrate the U.S. data center market. Considering the growing trend towards on-site power generation in the U.S., it anticipates high potential for additional orders in the future.

Doosan Fuel Cell has experienced a dramatic surge of over 20% in its stock price. This spi …

Doosan Fuel Cell Surges 24%: What Does the New U.S. Data Center Contract Mean for Investors?