AI speed-control debate ends as short-term noise

Japan and Taiwan have a relatively low share of memory semiconductors, so it is deemed reasonable that their gains are lower than Korea's. The analysis is that the market recognizes a pattern different from the past, when global interest rate conditions greatly shook the stock market.

This causes short-term market concentration, and semiconductor materials and equipment stocks also tended to show expanded volatility, giving back early-session gains. The lack of liquidity across the market is acting as a factor that makes sustained gains in a particular theme difficult.

At the same time, related disturbances such as the raid on ABL Bio continue without pause, and sentiment is that trust in bio companies overall is declining. With major bio investors' funds drying up and the need for improved supply-demand being raised, uncertainty in the sector has grown.

On the Bank of Japan's (BOJ) rate hike, the market split largely into two views. Some interpreted it as 'the start of a hiking cycle' and offered a negative outlook, while others assessed that uncertainty had been resolved because the hike was already expected. Citing the BOJ's rate decision vote of 7 to 2, some analysts said the market's response is also maintaining a balanced view.

The AI speed-control debate, which had been raised steadily since the start of the year, did not have a major impact on the market. However, it recently appeared as an opposing trend after the surge in AI-related stocks such as ASTRA, giving the market a fresh shock. This move alerted investors, but the dominant interpretation is that it was ultimately nothing more than short-term market noise. The view that there is no change in the fundamental growth drivers of the actual AI industry is gaining strength.

CPO is drawing attention as a next-generation technology that greatly improves data transmission efficiency by converting electrical signals into light signals. As the possibility of its application expanding not only to data centers but also to the robotics field is raised, interest in related equipment and materials companies is increasing. Full-scale adoption of CPO equipment is expected to become visible.

The company was recognized for its technology by supplying key chips in communication devices. RF Materials also operates diverse businesses including communication packages, laser modules, and defense sensors, showing the intersection of optical communication technology and defense technology. This suggests that advances in communication technology can also be linked to the defense sector.

This phenomenon has emerged as resource burdens grew because the current pace of model development is too fast, and the analysis is that it is merely a discourse that temporarily obscures the essence of the market. The long-term growth drivers of the AI industry remain powerful.

Existing frontier AI models have the limitation of latency. However, as lightweight software models such as Meta's Muse Spark emerge, they are leading the activation of the on-device AI era. As on-device AI advances, additional demand for semiconductors can arise, making this a time to pay attention to the development of software programs. Model lightweighting and inference efficiency will become important drivers of the future AI market.

An analysis says the rumor of early operation of the P4 line is unrelated to Samsung Electronics' stock price. The reduction in HBM stacking is due to technical issues, and the interpretation that issues such as Intel cooperation will soon lead to a surge in HBM demand is exaggerated. Voices are growing that the market should be wary of excessive interpretation of AI infrastructure scalability.

The conclusion was reached that the AI speed-control debate that shook the market this week was ultimately groundless noise. Hardware leaders such as Samsung Electronics and Hynix remain key themes of the AI era. Rotation into sectors such as AI-related power and nuclear power is expected to continue. The market maintained faith in the fundamental growth drivers of the AI industry and showed itself unshaken by short-term external noise.

An analysis says wire and power equipment stocks have technically reached near their highs. The recent strength, with almost no upper shadows on gains, can be interpreted as a positive signal. However, expert Kim Jang-yeol advised that this is the time to consider taking profits around Monday. The opinion is that for stocks such as LS Electric, a strategy of responding to rotation is needed given valuation burdens.

The effectiveness of an event-driven investment strategy for stocks ahead of specific events, such as aerospace-related stocks, was emphasized. The speaker explained that profits can be generated through such scheduled trading. He noted that it is important to focus on stocks whose supply has been digested according to technical analysis and to capture gains from short-term events. Based on past experience, the analysis is that even after a stock surges on a specific event, it often rises again without fully digesting the supply.

Doosan Group drew market attention by announcing a large-scale investment of about 1 trillion won to expand copper-clad laminate (CCL) production. CCL is a PCB (printed circuit board) material essential for AI chip servers and the like, and this investment is intended to respond to surging AI-related semiconductor demand. The expansion news, which had been discussed for several days, had a positive effect on Doosan Group stocks overall. It is expected to serve as an important momentum for improving Doosan's performance.

A view was raised that Doosan's valuation is difficult to judge by the superficial PER (price-to-earnings ratio) of 37 times alone. Since Doosan is a holding company, the argument goes, the value of its main CCL (copper-clad laminate) business should be assessed separately, excluding the value of subsidiaries. Based on the main business, the current stock price is not that expensive and is analyzed as a good time to escape the bottom. The opinion emerged that a target price in the low 2 million won range is also a sufficiently reasonable area.

This is because the operating principles of frontier model developers and general agent users differ, and the analysis is that the spread of AI is an unstoppable, powerful trend. The explosive growth of agent AI is expected to have a positive effect on the related hardware market.