SK Telecom Co. SKM recently unveiled its cutting-edge SKT GPU-as-a-Service (GPUaaS) at its AI Data Center (AIDC) in Gasan, Seoul, South Korea. This artificial intelligence (AI)-driven initiative offers businesses access to scalable and customizable graphics processing unit (GPU) resources to meet their AI needs.

With the ability to select the count and duration of GPUs, companies can scale their operations, meeting the unique demands of various AI services. The GPUaaS also empowers businesses to configure customized packages tailored to specific requirements, including standalone servers, firewalls and dedicated network lines. Pricing for GPUaaS is decided according to multiple factors, such as contract duration, the number of GPUs required and the preferred billing options. 

To ensure the efficiency of GPUaaS, SK Telecom has partnered with Lambda, a top global GPU cloud company. Through this strategic investment, SKM has secured a stable supply of GPUs while leveraging Lambda's technical expertise in GPU technology. This collaboration augments SK Telecom's capacity to meet the evolving computational demands of AI-driven enterprises.

In October 2024, SKM unveiled the AI Cloud Manager, a solution designed to advance GPU resource management. This innovative tool streamlines GPU management by treating multiple GPU resources as a unified computing entity. Businesses can significantly reduce the time required for AI model training, facilitating faster development cycles. By combining AI Cloud Manager with GPUaaS, SK Telecom allows enterprises to manage GPU resources with improved efficiency. 

SK Telecom Co., Ltd. Price and Consensus

SK Telecom Co., Ltd. price-consensus-chart | SK Telecom Co., Ltd. Quote

Furthermore, the latest GPUaaS innovation uses NVIDIA H100 Tensor Core GPUs. SK Telecom aims to integrate one of NVIDIA's latest GPUs, the H200 Tensor Core, by the first quarter of 2025. By bringing the H200 to South Korea, SK Telecom aims to accelerate the development of AI technologies and services by domestic companies and simultaneously fuel the growth of its GPUaaS customer base.

SKM’s AI-Embedded Innovations Gain Healthy Traction

SK Telecom strides toward strengthening its foothold in the AI infrastructure landscape. As industries increasingly rely on AI to stay competitive, SKM’s cutting-edge solutions empower them to remain on top of the game. Recently, the company entered into an agreement with SK hynix and Penguin Solutions to mutually foster the research, development and business expansion of AIDC solutions. In December 2024, it invested $3 million in Twelve Labs to bolster multimodal AI applications across a broad spectrum of industries. SKM has also collaborated with global LLM leaders to develop an advanced AI system for telecom. 

The company’s relentless efforts to drive AI-powered innovations and growth are likely to impress investors, reflecting positively in its share performance. 

In the last reported quarter, SKM reported consolidated revenues of KRW 4.5321 trillion, marking 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 Performance

SK Telecom currently carries a Zacks Rank #3 (Hold). Shares of the company have risen 0.2% in the past year against the sub-industry's decline of 14.6%.

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Stocks to Consider

Some better-ranked stocks from the broader technology space are InterDigital, Inc. IDCC, Ubiquiti Inc. UI and Qualcomm Incorporated QCOM. IDCC & UI presently sport 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%.

Ubiquiti’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques. In the last reported quarter, Ubiquiti delivered an earnings surprise of 20.9%. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth.

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.

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