Chesley Morning Brief: New York Stock Market Rises on US-Iran Ceasefire Expectations… Nasdaq Up 0.91% (May 29)

Summary

The morning brief covers Dell Technologies' massive earnings beat, confirming AI server demand and memory bottlenecks. The team discusses the early-stage AI capex cycle, highlighting Samsung Electro-Mechanics' silicon capacitor momentum and caution on Korean SI stocks. US-Iran ceasefire hopes and falling yields support broader markets, while the Korean market shows divergence between large-cap semiconductors and small-cap weakness.

• Dell Technologies reported a huge earnings and guidance beat, driven by AI server demand.
• Memory (DRAM/NAND) is identified as the biggest supply bottleneck in AI infrastructure.
• AI capex as a share of GDP is still low and expected to rise for years, supporting a long-term cycle.
• Samsung Electro-Mechanics surged on silicon capacitor orders for AI, with high margins.
• Korean SI stocks (LG CNS, Samsung SDS) are seen as late-cycle plays with limited growth.
• US-Iran ceasefire hopes and falling yields drove a positive session on Wall Street.
• The Korean market showed extreme concentration, with semiconductors outperforming while most stocks declined.
• The team expects near-term volatility but maintains a bullish view on AI-related sectors.