This week, the market is expected to remain cautious ahead of major events such as NVIDIA's earnings announcement and the Jackson Hole meeting.
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A visit to Xiaomi's car factory revealed an impressive, fully automated system with almost no human presence. Similar to Tesla's Gigafactory, it adopted a method of mass production in one go. In particular, the quality of the steel used for the vehicle's exterior was evaluated as being quite close to that of European luxury vehicles.
This week, the market is looking forward to major events. The Jackson Hole meeting begins on Thursday, and on the same day, Thursday morning Korean time, NVIDIA's earnings announcement and investor relations are scheduled. Park Byeong-chang, CEO, predicted that until these big events, the market would remain cautious and not be significantly affected by macro variables. Investors are focusing more on CEO Jensen Huang's remarks and the presentation of a new vision than on NVIDIA's actual performance.
Over the past one to two weeks, the market's biggest concern has been the surge in treasury yields. In addition, inflation and geopolitical risks are contributing to global economic instability. However, historical precedents show that policy solutions have often emerged from Jackson Hole meetings when major market problems occurred. As a result, there is an atmosphere of positive anticipation in the market for the outcomes of this Jackson Hole meeting.
SK Hynix is pursuing share buyback and cancellation as its shareholder return policy. In contrast, Samsung Electronics announced a 15 trillion won share buyback, but stated that these shares would be used for employee performance compensation rather than cancellation. Samsung Electronics is focusing on a cash dividend policy, and the final plan for large-scale share buybacks and cancellations is expected to be confirmed at a board meeting next January. Thus, the two companies show differences in their shareholder return methods.
An analysis suggests that Korea's strong exchange rate trend will be difficult to sustain. Park Byeong-chang, CEO, pointed out that "our propensity to consume is unexpectedly low," and "it is even lower than that of a massive country like the United States." He explained that due to these factors, the Korean won is not in a situation where it can consistently maintain strength.
NVIDIA is reportedly notifying companies of a price increase of over 15% for its products. According to a Bloomberg report, the primary reason for this price increase is analyzed to be the rising cost of DRAM. This can be interpreted as positive news for the semiconductor, especially the memory semiconductor, industry. As rising DRAM prices affect the product prices of major companies like NVIDIA, there is also a possibility of a ripple effect of price increases across the entire supply chain.
Apple's attempt to introduce Chinese memory due to rising memory prices is facing difficulties. China's Changxin Memory offered a higher price than Samsung Electronics or SK Hynix, disrupting Apple's introduction plan. Coupled with the US government's stance against Chinese memory, Apple is in a difficult position. This case shows that when interpreting global industries, the influence of big tech companies like Apple can extend beyond simply the supply chain to control political and economic landscapes.
Reports suggest that the Trump administration may approve the use of Chinese memory. This move could be interpreted as a gift to China or a political bargaining chip. While this decision would affect Korea's semiconductor industry, it would likely be welcomed by China. The Trump administration's strategic approach is expected to be a significant variable in US-China relations and the global semiconductor market.
Samsung Electronics' stock price showed a favorable trend last week but is currently declining again. Park Byeong-chang, CEO, analyzed that if the stock price closes within minus 3% today, there is potential for further upside. He advised investors to define the intrinsic nature of the semiconductor sector themselves and invest in line with its long-term trends, rather than selling Samsung Electronics and SK Hynix shares from a short-term perspective. It is time to look at the market with a long breath rather than a short-sighted approach.
This week, a cautious atmosphere is expected to dominate the market at the beginning of the week. Park Byeong-chang, CEO, analyzed that only stocks with individual issues or momentum are likely to move in a limited way. The overall market trend is expected to find direction after confirming the results of the big events scheduled for Wednesday and Thursday. Investors will likely need a cautious approach while closely monitoring major events for the time being.
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