Promising Stocks After NVIDIA's Earnings Announcement?

This is because the recent decline in NVIDIA's stock price has, to some extent, already factored in potential underperformance.

However, he added that some investors might engage in profit-taking, leading to a short-term release of selling pressure.

NVIDIA's earnings can also influence the stock performance of HBM (High Bandwidth Memory) related companies like Micron, Hynix, and Samsung Electronics.

With the Federal Reserve's (Fed) interest rate guidance becoming unclear after the Jackson Hole meeting, CEO Seol Jae-hwan analyzed that the Fed's stance of 'deciding rates only based on data' has increased the importance of economic data, most of which are lagging indicators.

Currently, U.S. consumer sentiment is declining, and employment indicators are also showing a worsening trend, which is expected to influence the Fed's policy decisions.

The current probability of a rate hike is low, at 32-40%.

Therefore, he emphasized that this is a critical time for investments based on corporate earnings and growth potential.

He particularly noted the possibility of the U.S. government acquiring a stake in Westinghouse as a positive signal.

This is due to Westinghouse having been a U.S. company in the past, and the current global surge in electricity demand highlights the importance of the nuclear power industry.

Currently, Westinghouse's ownership structure includes private equity stakes, such as Cameco, making an exit essential. In this situation, the explosive growth of AI data centers combined with the need to replace aging power facilities has led to a surge in electricity demand in the U.S., increasing expectations for nuclear power plant construction.

CEO Seol Jae-hwan positively projected that despite official denials from the U.S. government, there is a strong possibility of them acquiring a stake in Westinghouse. This is based on the judgment that the U.S. has no choice but to actively invest in the nuclear power industry to strengthen its energy security and industrial competitiveness.

CEO Seol Jae-hwan emphasized that most companies with nuclear power plant construction capabilities worldwide are in South Korea. Major Korean construction companies like Hyundai E&C and Samsung C&T possess such competitiveness, meaning that if U.S. nuclear power projects expand, it could create significant opportunities for domestic nuclear power component and related companies.

While the stock price of Doosan Enerbility, a representative nuclear power-related stock, has recently fallen by an average of 38%, CEO Seol Jae-hwan viewed this as an opportunity. He stressed the need to pay attention to nuclear power-related stocks that institutions and foreigners are actively accumulating.

Supply and demand are crucial factors in the stock market, and buying by institutions and foreigners can signal a stock's potential for upside.

This is because the current trading volume on the KOSPI is 22 trillion won and on the KOSDAQ is 4.46 trillion won, indicating a deepening shortage of trading volume, which limits upward momentum.

Furthermore, the high level of U.S. Treasury yields and political uncertainties like midterm elections are also exacerbating market uncertainty, and there is a high probability that the composite index will remain range-bound until the end of the year.

This means that while a rapid rise is difficult due to selling pressure from individual investors, the stock price is unlikely to fall significantly.

Therefore, he recommended a strategy of selecting stocks that can join the ranks of leading stocks for investment, rather than short-term trading.

He stated that while investors may initially not understand why institutions and foreigners buy certain stocks, the reasons become clear over time.

GS's growth potential related to energy and AI data centers led to accumulation by foreigners and institutions, which eventually resulted in a stock price increase. This suggests that long-term investment in stocks accumulated by foreigners and institutions is effective.

He believes these stock groups are highly likely to show a similar trend to GS earlier this year and advised focusing on leading stocks in export sectors supported by strong supply and demand.

Therefore, he emphasized that stocks already accumulated by institutional investors are likely to show relative strength even in a declining market.

This means investors should prefer supply-and-demand stocks where the owners of the shares are identifiable, emphasizing investing in stocks bought by verified supply and demand entities rather than uncertain ones.

CEO Seol Jae-hwan explained that when foreign investors, such as global asset manager BlackRock, publicly disclose a stake of 5% or more, institutional investors often follow suit with joint purchases. He mentioned that there are currently stocks showing this pattern that have not yet been reflected in their prices, and advised focusing on them.

This is because large foreign investors' stake disclosures can act as a positive signal for institutional investors, attracting demand and potentially leading to a subsequent increase in stock price.

CEO Seol Jae-hwan stated that due to the paid member priority principle, it is difficult to publicly disclose accumulated stocks or specific stocks on free broadcasts. This is because it could be misinterpreted as 'stock manipulation' under regulations, and he emphasized that he has always provided honest investment advice and will continue to do so.

Therefore, he proposes a safe investment strategy focused on the top 1st and 2nd leading stocks in each industry, concentrating on fundamentally strong stocks that can secure downside rigidity even amid large volatility.

CEO Seol Jae-hwan pointed out that in the South Korean stock market, over 90% of investors have incurred losses, and less than 10% have made profits, a vicious cycle that has continued. He believes this trend will persist and recommended long-term investment in industry-leading stocks or second-ranked stocks, as day trading is difficult to succeed at consistently.

Just as those who invested long-term in Samsung Electronics for 30 years after the IMF crisis made significant profits, he emphasized the importance of choosing fundamentally strong stocks that one can hold onto even if they temporarily fall. He asserted that long-term investment in verified blue-chip stocks, rather than day trading, is the secret to successful investing.