Ideas
Chinese AI package substrate growth story.
Shennan Circuits is a Chinese PCB and IC-substrate maker with scarce high-end package-substrate capabilities. Its 2Q revenue and profit grew sharply, margins expanded, and it is expanding FCBGA/advanced substrate capacity with exposure to AI data centers. The analyst sees a buy opportunity with a target price implying significant upside as AI data center and package-substrate demand improve.
Strong growth, cheap multiple, rate catalyst.
Nvidia's AI chip demand remains strong. Jensen Huang said chip sales could double over the next year as AI spreads across industries. The speaker notes Nvidia is growing revenue and EPS around 70% with 65% operating margins, yet trades near 16x forward earnings. High rates are pressuring the multiple, but if rates stabilize or fall, the valuation should re-rate; estimates keep being revised up and Micron's upcoming results could be a catalyst.
AI broadens semiconductor growth across supply chain.
BofA forecasts the global semiconductor market to roughly double from $1.67T in 2026 to $3.2T by 2030, an about 18% CAGR, driven by AI infrastructure. Growth is broadening beyond GPUs into memory, servers, networking, and semiconductor equipment. Memory and equipment are especially strong, and the 2027 outlook remains robust, supporting the whole semiconductor ecosystem.
Cheap equipment stocks with strong earnings growth.
Applied Materials and Lam Research have corrected sharply after excessive crowding, but fundamentals remain strong. Equipment sales are forecast to grow about 33-34% in 2026 and 2027, and both companies should deliver 30-40% earnings growth. Valuation has compressed to about 23x forward earnings for AMAT and about 26x for Lam, which looks attractive if rates stabilize; B2B earnings surprises can drive sharp rebounds.
Dilution and negative cash flow risk.
CoreWeave is growing revenue fast and lifting GPU rental prices, but it is funding heavy capex with debt and equity. The newly announced convertible notes and ATM share sale could dilute shares by around 15%. Interest expense is projected to exceed operating profit through 2028, free cash flow remains deeply negative until around 2029-2030, and EPS estimates face further dilution. The equity is unattractive until the financing and capex cycle turns.
Momentum leaders in Korean shipbuilding and defense.
In Korean shipbuilding and defense, the stocks with the strongest earnings momentum and highest valuation—Hanwha Ocean, HD Korea Shipbuilding, Hanwha Engine, Hyundai Heavy Industries Engine, and LIG Nex1—rebounded most sharply. High valuation reflects stronger earnings momentum, so these names should continue to show the strongest price elasticity when the sector bounces.
Hanjin KAL benefits from stronger Korean won.
Hanjin KAL is rallying because the Korean won is strengthening. Korean Air, its key subsidiary, pays about 80% of operating costs in US dollars, so a stronger won lowers costs and improves margins. Orderly supply-demand flow is also supportive.
AI parts drive record earnings; oversold.
KB Securities keeps a buy on Samsung Electro-Mechanics with a 300,000 KRW target, implying large upside from the 140,000 KRW area. The report expects Q3 record results driven by AI server MLCC, package substrates, full utilization, price increases, and mix improvement. MLCC margin could rise to about 22% and package substrate margin to about 20.8%. The stock has fallen about 40% from its high while fundamentals improved, so the selloff is an oversold buying opportunity.
SOTP fair value around 150T, not 300k.
Park Se-ik pushes back on the 300,000 KRW target, arguing the 85x P/E applied to total company earnings overvalues lower-quality businesses. Using sum-of-the-parts, MLCC deserves about 30x, package substrate about 40x, and camera module about 10x, which yields a fair market cap around 150 trillion KRW. That still implies roughly 50% upside from about 100 trillion KRW if next year's operating profit reaches 5 trillion KRW, but the stock is not worth 300,000 KRW.
Buy quality compounders as inflation fades.
Inflation will be structurally contained because China exported deflation, platforms are hurting offline retail, and AI/robotics are replacing both blue-collar and white-collar labor. Rates should eventually fall, but the key is to own quality companies with stable sales and earnings growth that can keep compounding through the cycle.
This Chesley Investment Advisory (체슬리투자자문) video, published September 18, 2026,
features Wang, Choi Ho, Oh, Park Se-ik
discussing 002916.SZ, NVDA, SMH, AMAT, LRCX, CoreWeave, 042660.KS, 009540.KS, Hanwha Engine, Hyundai Heavy Industries Engine, 079550.KS, Hanjin kal, 009150.KS, QUAL.
10 trade ideas extracted by AI with direction and confidence scoring.
Speakers:
Wang,
Choi Ho,
Oh,
Park Se-ik
· Tickers:
002916.SZ,
NVDA,
SMH,
AMAT,
LRCX,
CoreWeave,
042660.KS,
009540.KS,
Hanwha Engine,
Hyundai Heavy Industries Engine,
079550.KS,
Hanjin kal,
009150.KS,
QUAL
