Doosan Enerbility Surges on Power Infrastructure Expansion, Nuclear Power Stocks Strong… Nvidia Earnings and AI Market Outlook?

Doosan Enerbility has recently drawn market attention, recording a rise for three consecutive trading days. This is because it is being highlighted as a stock related to Small Modular Reactors (SMRs). In particular, issues related to its stake in Westinghouse Electric Company in the US acted as a positive catalyst in the market, driving up the stock price.

Shin Gwang-seop, Manager, emphasized Doosan Enerbility's strong momentum, stating, "Recently, it has truly felt like a leading stock in this area. We will review Doosan Enerbility." As the nuclear power industry reorganizes and the importance of SMRs is highlighted in the transition to renewable energy, Doosan Enerbility is being recognized as a beneficiary stock.

From a technical analysis perspective, Doosan Enerbility is also showing strong momentum and is developing into a market leader. This is interpreted as a reflection of investors' expectations regarding changes in energy policy and global nuclear power market trends.

Shin Gwang-seop, Manager, proposed a target price of KRW 100,000 for Doosan Enerbility. Currently, Doosan Enerbility shows a reverse arrangement chart, making it a crucial task to overcome this and enter a new upward trend.

To reach the target price, the 200-day moving average, around KRW 90,000, is expected to be the primary resistance and hurdle. Analysis suggests that to break through this level, an inflow of foreign capital combined with appropriate time-based correction will be necessary to challenge a new high.

Market attention is focused on whether there will be any mention of power infrastructure in Nvidia's earnings announcement, scheduled for early tomorrow morning. The rapid growth of the AI industry entails massive power consumption, making power infrastructure expansion essential.

Shin Gwang-seop, Manager, stated, "Tomorrow, during Nvidia's earnings announcement, this topic will likely come up again: issues related to power infrastructure. If it does, then naturally, these stocks will likely rise together." This suggests a potential simultaneous rise for related stocks like Doosan Enerbility if Nvidia presents a vision for power infrastructure.

Nvidia's earnings, to be announced at 5:30 AM tomorrow, are expected to be a crucial indicator for the overall direction of the AI industry, beyond just the performance of a semiconductor company. Shin Gwang-seop, Manager, emphasized that Nvidia can no longer be seen as a mere semiconductor company but should be recognized as an AI-leading holding company.

The key viewing points for this earnings announcement are the guidance for the next quarter and whether medium-to-long-term growth drivers through 2028 are presented. Rather than simple earnings figures, guidance and vision showcasing future growth potential are expected to have a greater impact on stock prices.

Nvidia's earnings per share (EPS) is expected to be over $2, as indicated by previous consensus and guidance. This appears to meet market expectations.

However, some raise concerns about a peak valuation, suggesting that the value up to 2027 may already be reflected in the stock price. In response, Shin Gwang-seop, Manager, pointed out that this might be excessive market concern and that the long-term growth potential of the AI industry should be considered.

Regarding the assertion that the AI market is in a bubble, Shin Gwang-seop, Manager, mentioned that if Nvidia's earnings or guidance fall below expectations or encounter problems, there's a possibility of a general collapse of the AI-related bubble. As Nvidia is a core driver and symbol of the AI industry, its earnings can significantly impact the overall market.

However, he predicted that this bubble would persist at least until the first half of next year. Analysis suggests that AI technology development and industrial application are still in their early stages, and innovative changes are ongoing, so the current investment fervor will likely continue for some time.

Wall Street expects Nvidia's stock to show a ±6% volatility range after its earnings announcement. This indicates that there could be significant fluctuations in the stock price depending on the earnings results and guidance.

Shin Gwang-seop, Manager, analyzed that if Nvidia presents guidance that exceeds market expectations, its stock price is highly likely to rise by more than 6%. In particular, the CEO's statements and future vision articulated during the conference call could significantly impact market capitalization.

The basic scenario anticipates a smooth earnings announcement and positive guidance leading to a stock price increase. This is interpreted as reflecting the robust growth of the AI industry and Nvidia's dominant position.

If Nvidia's earnings are weak, or if issues like the Rubin bottleneck in AI chip production are mentioned, there's also a possibility of the stock price plummeting by 12-13%. Shin Gwang-seop, Manager, explained that if Nvidia's stock falls by 6%, greater volatility could occur due to its option structure.

This implies that because Nvidia's stock has a very significant impact on the market, even small negative signals can trigger a sensitive reaction, leading to a sharp decline.

Nvidia's stock price tends to decline before an earnings announcement and then rebound afterward. This is because buying interest at lower prices is attracted as uncertainty surrounding the earnings release dissipates.

Conversely, if the stock price has already risen significantly due to anticipation before the earnings announcement, a sharp drop (Sell-on) due to 'disappearing momentum' can occur even if actual earnings are good. Investors need to be aware of this pattern and approach cautiously.

Micron's CEO clearly stated that purchasing power and demand for AI semiconductors are endless. This is significant evidence supporting the strong growth of the AI industry.

In particular, supply conditions related to long-term customers are expected to remain tight for up to the next five years. This suggests that the AI semiconductor market is not a short-term trend but has secured long-term growth drivers.

Symtek announced a large-scale new facility investment of KRW 274.2 billion, nearly half of its equity capital. This investment is interpreted as a strategy to proactively respond to the increasing demand for next-generation semiconductor substrates.

The facility is scheduled to be completed by the end of 2027 and will commence full-scale production in 2028. The operation of the new facility is expected to increase Symtek's operating profit margin by approximately 20%, significantly contributing to the company's long-term growth momentum.

This large-scale investment is seen as Symtek's commitment to strengthening its business portfolio in line with the growth of the AI and high-performance computing markets and enhancing its global competitiveness. Such investments are expected to positively impact Symtek's future earnings.

Shin Gwang-seop, Manager, introduced Techwing as a promising stock, stating that the company operates a cube equipment business. Notably, it is engaged in HBM4-equipped machinery, making it one of the top four Nvidia beneficiary stocks.

For investment strategy, a target price of KRW 70,000 and a stop-loss price of KRW 43,000 were suggested. This reflects expectations that Techwing's technological capabilities will grow alongside the HBM4 market.