Amid continued foreign buying despite the US stock market holiday, an analysis suggests that investments in semiconductors and power-related stocks remain valid.
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Last week, a rebound was confirmed across most indicators, signaling a shift in perspective for the semiconductor market. An analysis suggests it's time to move past the cautious view and actively commit.
"Now, most indicators have shown a turn last week. So, I think it's time to really put our weight behind it," emphasized analyst Han Tae-hyun.
The SOX rebalancing announcement, originally scheduled for last Friday, has been delayed to this Friday. This is understood to be due to the establishment of new regulations on September 2.
Analyst Han Tae-hyun stated, "The SOX rebalancing was supposed to be announced last Friday, but it wasn't."
The semiconductor memory market's stock prices are predicted through price (P) and quantity (Q) cycles. While the market cannot rise indefinitely, it is expected to remain at its profit ceiling for a considerable period. Such market infrastructure investment will play a key role in replacing labor costs, i.e., in the advancement of AI software.
"When looking at stock prices, the most important thing is whether it's a P cycle or a Q cycle... Memory is actually similar... It can't go up indefinitely, but we need to keep thinking about how long it will stay at a certain profit valuation ceiling," explained analyst Han Tae-hyun.
The most exciting time in the stock market is a chaotic period before a clear leader emerges. The current software market exhibits this characteristic, and the fiercer the technological competition, the greater the investment anticipation.
OpenAI's new technology announcement reignited this market, drawing investors' attention.
Currently, AI technologies like Gemini and ChatGPT inherently improve performance proportionally with the amount of hardware used. This creates a situation where semiconductor, optical communication, and power companies cannot afford to fall behind in the competition. The fierce competition for massive GPU investment to enhance AI performance will inevitably continue.
Analyst Han Tae-hyun emphasized, "Right now, for both Gemini and ChatGPT, the more hardware you use, the better the performance definitely gets."
The trickle-down effect in the nuclear power market is extending beyond construction and gas turbine companies to fitting valve manufacturers. This expanding warmth is positively evaluated by the market, demonstrating continuous movement in the nuclear power sector.
The speaker commented, "As the trickle-down effect is clearly continuing, shouldn't the market evaluate this positively as a continuous movement?"
Despite the recent rebound in AI software companies, an analysis suggests that a hardware-centric investment strategy remains valid. Software is considered a sell-off area for existing holders, and attention should be paid to hardware companies related to AI infrastructure investment, such as semiconductors and power equipment.
It was added that domestic software companies have structural limitations, so hardware investment may be more stable in the long run.
The current market is characterized by sectoral and stock-specific rotations, moving day-by-day based on news. After large-cap stocks drive an initial surge, a rebound in the SOBUJANG (materials, parts, and equipment) sector can be anticipated.
It was advised that since the semiconductor industry is expected to grow steadily, forming a portfolio with SOBUJANG as a co-leader could be a good strategy.
Recently, glass substrate-related stocks, such as PIOPTICS, have surged over 60% from their lows, showing signs of short-term overheating. Rather than a short-term approach, it's advisable to realize profits and then observe. Since the stock is rising from a significantly pulled-back position with increased trading volume, re-entry should be considered during pullbacks.
However, the mid-to-long-term growth potential due to data center advancement remains valid.
From September to October, the main keyword for the domestic market is semiconductors, but when the semiconductor sector takes a break or supply and demand are dispersed, power-related stocks are expected to absorb the most liquidity. Policy momentum is anticipated ahead of the US midterm elections, and cost-of-living issues like electricity rates could be major variables.
This analysis suggests that the market trend will diverge based on whether or not stocks are associated with power-related keywords.
The soaring electricity prices in the United States are significantly slowing down approvals for data center expansion. In some regions, particularly Pennsylvania ahead of the midterm elections, expansion approvals have even been completely halted.
This indicates that power infrastructure expansion and cost issues are critical variables affecting the growth of the data center industry.
As major companies like Hyundai Motor's Boston Dynamics prepare to transition to mass production of robots, the reorganization of the robot stock market's supply chain is becoming crucial. The most important criterion for selecting component suppliers will be whether they are part of the supply chain, i.e., have references. Investors should thoroughly examine their inclusion in the supply chain.
The speaker advised, "At this point, it is absolutely best to thoroughly examine whether they are involved in such a supply chain or not, whether they have references or not; that difference is key."
Robotis is significantly expanding its sales share in the two major markets of the United States and China. Currently, US market sales account for 40% of the total, and the proportion of sales in the Chinese market has risen to 30%.
Furthermore, LG Electronics is the second-largest shareholder of Robotis, and its association with NVIDIA is also garnering attention, leading to high expectations for future growth potential.
Institutional buying for Lotte Energy Materials has been consistent since August 27. Overall purchase inflows from financial investment firms, insurance companies, investment trusts, and pension funds show continuity.
This is analyzed as a move by institutional investors who positively anticipate increased demand for copper foil due to growing demand for ESS (Energy Storage System) batteries.
BA Tech acts as the sole vendor for supercapacitors supplied to Bloom Energy, securing an exclusive position in the supply chain. BA Tech's technology stands out as the quality of competitors' supercapacitors is not yet verified.
A positive outlook is projected, with an earnings turnaround expected in the fourth quarter after the impact of the third-quarter fire subsides.
Answers come from the transcript, with the exact spot cited.
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