AI Neocloud Elice’s CEO Sees Sales Doubling After Shares Rebound

South Korea’s Elice Inc. is on track to at least double revenue this year, its chief said as the AI infrastructure company’s shares rebounded from a brutal trading debut.

“We’re basically doubling the revenue compared to last year. That’s like minimum guidance,” Chief Executive Officer Jae Won Kim said in an interview on Bloomberg Television. “I’m not worried about the volatility issues in the first week.”

Elice shares rose 30% on Wednesday, recouping much of the ground lost after its shares plunged on the first day of trading.

Neocloud service providers around the world are facing investors who are becoming more selective with their bets on AI. Rising debt levels are raising questions about long-term returns for AI services beyond hardware manufacturers such as Nvidia Corp., SK Hynix Inc. and Taiwan Semiconductor Manufacturing Co.

Read more: AI Neoclouds Lose Their Shine, Stalling IPOs and Sinking Stocks

Kim is betting that accelerating demand for AI computing power will drive a sharp increase in sales in coming years. Elice, which began as an education technology startup before pivoting to AI infrastructure, is expanding its advanced cloud services and modular data center operations.

Kim argues that Elice is different from other AI-focused cloud providers. One advantage is that it can deploy factory-assembled facilities in less than three months, allowing Elice to capitalize on surging demand quickly, according to the company.

Elice’s revenue rose 200% in the first half of this year to 34.4 billion won, according to its prospectus. The company swung to an operating profit, while earnings before interest, taxes, depreciation and amortization jumped more than 11-fold.