Don't Be Swayed by Short-Term Supply and Demand…What to Look for in the Long Cycle of AI and Semiconductors | Jung Woo-chang, Yeo Do-eun, Heo Jae-mu

Summary

Jung Woo-chang of NH Investment & Securities argues investors should focus on the long AI and semiconductor cycle rather than short-term supply and demand swings. He compares AI to the internet cycle, says Korean memory leaders Samsung Electronics and SK Hynix remain undervalued, highlights accelerating U.S. earnings and Big Tech cash flow strength, and notes Tesla FSD as evidence that physical AI is reaching an adoption inflection.

• Korean market trades higher led by semiconductor equipment and memory names, but the guest urges focusing on long-term fundamentals.
• The AI cycle is compared to the 1990s internet cycle, and the guest argues AI is stronger and still early.
• Samsung Electronics and SK Hynix fell 40-50% while earnings and memory prices improved; HBM is described as the AI infrastructure bottleneck.
• U.S. S&P 500 EPS growth accelerated and Big Tech cloud and RPO metrics are cited as strong.
• Alphabet's negative free cash flow headline is argued to be overblown given its cash holdings and operating cash flow.
• Tesla FSD is presented as a real physical-AI adoption moment, though not an explicit stock recommendation.
• The guest maintains long-term positions and suggests steady accumulation rather than trading short-term volatility.