Discussion on Korea-US Nuclear Power Cooperation… Nvidia's Investment Strategy?

It has been reported that the US government, the Korean government, and Korea Electric Power Corporation (KEPCO) are discussing the joint acquisition of a stake in the US nuclear power company Westinghouse. Expert Lee Chang-won cited remarks by the Minister of Trade, Industry and Energy, stating that additional details regarding Korea-US cooperation will be announced in September.

These discussions are taking place as energy, particularly the nuclear power sector, has emerged as a strong candidate for the first major investment in the US. This move is interpreted as aiming to strengthen energy security for both countries and secure competitiveness in the global nuclear power market through nuclear technology cooperation and equity acquisition.

Expert Lee Chang-won explicitly stated, "We are discussing a plan to jointly acquire a stake in the nuclear power company Westinghouse with the US government."

These developments are raising expectations for synergy through the combination of Korea's nuclear power technology and the US's capital and market accessibility.

As Nvidia's earnings announcement approaches, market expectations are very high. The market currently forecasts Nvidia's revenue to be in the range of $92 billion to $93 billion, with adjusted EPS (earnings per share) around $2.08. Furthermore, the market's demand for gross margin is approximately 75%.

Expert Lee Chang-won explained the high expectations, stating, "Currently, revenue itself is projected from $92 billion to $93 billion." He analyzed that the third-quarter guidance (future performance outlook) and remarks by Nvidia CEO Jensen Huang would have a greater impact on stock prices than the actual earnings themselves.

Ahead of Nvidia's earnings announcement, significant volatility is expected in the options market. Expert Lee Chang-won analyzed that, based on option positions, the stock price could show volatility of about ±5.4% after the earnings announcement. He emphasized market expectations, saying, "The volatility is expected to be around plus or minus 5.4%." This shows that investors are anticipating the possibility of a large short-term movement in Nvidia's stock price depending on the earnings results.

While Nvidia's stock performance historically directly influenced Korean semiconductor stocks, analysis suggests that this coupling phenomenon has recently weakened. Expert Lee Chang-won pointed out that the trends of Nvidia and AI tech stocks are now moving in opposite directions compared to before.

He explained, "Now, when they rise, these fall; they're now moving in somewhat opposite directions. And Nvidia is exactly in the middle." He emphasized that Korean semiconductor stocks like Samsung Electronics and SK Hynix now show a stronger coupling with other semiconductor companies such as Micron, rather than Nvidia.

He added that in the long term, the synchronization between Nvidia and the Korean stock market is not strong, and stock price movements are likely to be determined by their unique factors.

Expert Lee Chang-won stated that the nuclear power-related stocks he previously emphasized have recently shown a rapid increase. He mentioned that major stocks such as Doosan Enerbility, BH, TaeWoong, KEPCO KPS, and Woojin ENTEC have risen, confirming that these stocks performed well in the market.

The expert stated, "Nuclear power, and then stocks like Doosan Enerbility, BH, TaeWoong, KEPCO KPS, Woojin ENTEC—the stocks I emphasized—all took off today," highlighting the performance of his recommended stocks.

Lumentum Holdings is emerging as a key beneficiary of Nvidia. Expert Lee Chang-won explained that Lumentum Holdings received a direct investment of $2 billion from Nvidia, emphasizing the need to focus on key changes in AI communication networks.

Nvidia CEO Jensen Huang previously mentioned in a conference call that AI communication should shift from copper to optical fiber. Accordingly, Lumentum Holdings is considered a key beneficiary of this transition in AI communication networks. The expert explained, "You absolutely must look at Lumentum Holdings. Because in the last conference call, Jensen Huang said that AI communication should now be done with optical fiber, not copper."

With the rise of Lumentum Holdings, domestic optical communication-related stocks are expected to benefit. Expert Lee Chang-won highlighted the investment appeal of domestic optical communication stocks, naming Korea Optical Communication, Lightron, and Ubiquoss.

In particular, he analyzed that Korea Optical Communication has a high possibility of a sharp rise as it changed from a warning stock to a caution stock. He said, "There's Korea Optical Communication; it's changed from a warning stock to a caution stock, so it could surge. Then Lightron, and then Ubiquoss," also suggesting the possibility of these stocks breaking their previous highs.

The collaborative relationship between Naver and Nvidia, and the fact that Nvidia is a major shareholder of Naver, are once again drawing attention. Expert Lee Chang-won explained the background behind Nvidia becoming Naver's third-largest shareholder and Naver raising $10 billion from Nvidia and Brookfield, resulting in Nvidia holding a 4.5% stake in Naver.

He stated, "You know Nvidia is Naver's third-largest shareholder, right? Naver raised $10 billion from Nvidia and Brookfield, so Nvidia acquired a 4.5% stake in Naver." He analyzed that this equity relationship increases the possibility of data center expansion and AI-related collaboration.

This suggests that Nvidia can play a key role in strengthening Naver's AI competitiveness, and synergy between the two companies is expected.

With the advent of the physical AI era, LG Electronics is emerging as a key investment stock. Expert Lee Chang-won mentioned ongoing discussions about humanoid robot collaboration between LG Electronics and Nvidia, highly evaluating LG Electronics' growth potential.

He strongly recommended, "The stock you absolutely cannot leave out is LG Electronics. I believe LG Electronics will also take off. If you don't own it now, buy it unconditionally," advising an aggressive buying strategy at the current stock price. This reflects the expectation that, as the fusion of robot technology and AI accelerates, LG Electronics will evolve beyond a simple home appliance company to become a leader in the physical AI sector.

Due to the rapidly increasing demand for AI data centers, MLCC (Multi-Layer Ceramic Capacitor) related companies are expected to benefit. As AI data centers and AI server rack expansions accelerate, the amount of MLCCs installed in them is surging, reaching 30 to 40 times that of smartphones.

Expert Lee Chang-won explained, "If there's talk of needing to build more AI data centers and that demand will surge, then MLCC-related stocks that go into these AI data centers and AI server racks could also jump." He stated that strong performance is expected, particularly from Samsung Electro-Mechanics and Samwha Condenser.

Nvidia has reportedly notified its major customers of a price increase of over 15% for AI server systems. This price increase is analyzed to reflect the rising supply costs of high-bandwidth memory (HBM) and DRAM memory.

Expert Lee Chang-won stated, "Nvidia's major customers have been notified that AI server system prices will increase by more than 15%." This is interpreted as part of Nvidia's strategy to maintain a high-profit margin of 75%.

It appears to be Nvidia's move to maximize profitability by exercising price-setting power, based on its dominant position in the AI market.

PSK Holdings is emerging as a beneficiary for its reflow and desum process equipment, which play critical roles in high-bandwidth memory (HBM) production. Expert Lee Chang-won explained that PSK Holdings' reflow equipment functions like an oven in the HBM bonding process.

He said, "PSK Holdings' reflow equipment is what we commonly think of as an oven. That reflow equipment is also that concept," and emphasized that desum equipment, which removes wafer residue, also plays an important role. PSK Holdings is part of Samsung Electronics' supply chain, and continuous growth is expected with advancements in HBM technology.

YC is gaining attention as a company specialized in test equipment for Samsung Electronics. Expert Lee Chang-won explained that YC was founded by former Samsung Electronics executives, emphasizing its close relationship with Samsung Electronics.

He mentioned, "YC is for Samsung Electronics' test equipment. YC is for Samsung Electronics, and YC itself was originally founded by former Samsung Electronics executives." This background has favorably positioned YC to secure a stable business foundation by supplying optimized test equipment to Samsung Electronics.

Expert Lee Chang-won analyzed that the stock price adjustment for Hyundai Motor after its Investor Day was a typical 'sell the news' pattern. Profit-taking emerged after Investor Day, leading to a decline in the stock price.

He explained, "Hyundai Motor Investor Day happened, and Hyundai Motor didn't fall significantly, but it did fall after the event. So, it was a typical sell-the-news event." This refers to a phenomenon where a specific event, after driving up stock prices due to anticipation, leads to a decline in prices once the event occurs and the catalyst dissipates.

After this Hyundai Motor Investor Day, not only Hyundai Motor but also Kia, Hyundai AutoEver, and Hyundai Mobis experienced concurrent declines across the group. This is interpreted as investors preemptively reflecting expectations for the Hyundai Motor Group's future vision into the stock price, then realizing profits at the time of the actual announcement.

Although expectations for the automotive industry's electrification and future mobility strategy were high, short-term catalyst dissipation appears to have created downward pressure on stock prices.