So Jin-woong

The speaker argues that despite macro uncertainties such as trade tensions and potential BOJ rate hikes, the AI-driven demand for memory semiconductors creates such clear earnings visibility that investors have no choice but to follow the trend. Korean memory leaders Samsung Electronics and SK hynix are benefiting from sustained AI capex and supply bottlenecks, with upward earnings revisions continuing to support their stock prices. The speaker emphasizes that memory's earnings are already visible in actual results and are expected to improve further, justifying the market's concentration on these names.

The speaker argues that despite macro uncertainties such as trade tensions and potential BOJ rate hikes, the AI-driven demand for memory semiconductors creates such clear earnings visibility that investors have no choice but to follow the trend. Korean memory leaders Samsung Electronics and SK hynix are benefiting from sustained AI capex and supply bottlenecks, with upward earnings revisions continuing to support their stock prices. The speaker emphasizes that memory's earnings are already visible in actual results and are expected to improve further, justifying the market's concentration on these names.

Short-term rotation of Asian funds from Korean/Japan AI hardware names into China/Hong Kong tech is underway. Hang Seng Tech index, previously a major underperformer, is showing a strong rebound, and some money is shifting into this space as a near-term play while Korean semiconductor names correct.

Japanese retail stocks like Fast Retailing (Uniqlo) and Isetan Mitsukoshi have consistently performed well on strong fundamentals and serve as a defensive 'sub-play' amid high AI/semiconductor volatility. They are worth watching and owning as the AI trade remains either strong or uncertain, offering a steady portfolio hedge.

Japanese trading companies (sogo shosha) are long-term beneficiaries of a multipolar world where resource scarcity and infrastructure value increase. Their valuations have risen but reflect a structural shift, and they are expected to grind higher gradually.

KOSPI is undervalued because earnings estimates are rising rapidly, making the valuation look low despite the index's recent gains. The market's concentration on semiconductors and AI is justified by export strength and structural demand.