35 353200.KS Daeduck Electronics Co., Ltd. Loading... : Bullish and Bearish Analyst Opinions

The AI substrate sector is in a golden age. Large-cap substrate stocks (Samsung Electro-Mechanics, LG Innotek) had a volume spike today, indicating some holders are taking profits and the near-term outlook is uncertain. In contrast, Kosdaq-listed substrate stocks (Korea Circuit, Daeduck Electronics, Isu Petasys) are rising on lower volume, suggesting holders are not selling and there is room for further upside. Therefore, Kosdaq substrate stocks are more attractive for continued investment.

Global investors are rotating to CPU-related stocks as the next bottleneck after GPU and power in the AI hardware cycle. Korean substrate (기판) stocks, including Samsung Electro-Mechanics, LG Innotek, Simtek, Daeduck Electronics, and others, are leveraged to this CPU shortage theme. Additionally, substrate stocks historically are the last group to rally in an AI semiconductor cycle, and they are currently showing strong momentum and volume, suggesting this is the final leg of the rally before a potential peak. The speaker expects these stocks to continue their steep upward trajectory in the near term.

Substrate (기판) suppliers are in a powerful upcycle: capacity is constrained, demand is surging due to larger and multi-layer substrates for AI chips, and raw material costs are rising, pushing average selling prices up more than 20% in Q1. The trend is expected to continue into the second half. Leading companies include Simmtech, TLB, Korea Circuit, Daeduck Electronics, and ISU Petasys.

Daeduck Electronics, a PCB/substrate manufacturer, will benefit from increased lead frame and substrate demand as autonomous driving and electric vehicles drive higher semiconductor content per vehicle. He identified this through AI research and recommends it as a secondary play after Samsung Electro-Mechanics.

Semiconductor substrate stocks such as Samsung Electro-Mechanics, Daeduck Electronics, and Simmtech are moving higher on solid earnings and are part of the broader semiconductor supply chain strength. This sector offers a narrower play on the AI/semiconductor cycle.

Daeduck Electronics is the technology leader among small/medium PCB and substrate companies. It is the only Korean firm producing FCBGA substrates, and also makes high-layer MLB and PCBs. With capacity expansion (10 new lines) and strong demand due to supply shortages, the stock still has room to run toward target prices despite a recent earnings miss.

Daeduck Electronics is a beneficiary of new memory facility investment decisions. With PCB factory expansion coming, its costs have stabilised while selling prices rise, making it well-positioned for continued gains.