Big Tech Increases AI Investment Despite High Interest Rates…Demand Not Broken Even Amid Semiconductor Correction

Summary

Kim Jang-yeol reviews the day's market action, highlighting a construction sector surge driven by real-estate policy, data centers, and nuclear orders. He notes event-driven interest in SK Telecom and LG CNS ahead of Korea's 'National AI' selection results. The core thesis is that semiconductor memory stocks (Samsung, SK Hynix) are deeply oversold, as AI data-center capex from US Big Tech remains robust, and corporate debt structures insulate hyperscalers from rising rates. He adds a positive call on Ibiden after strong earnings and guidance.

• Korean construction stocks rallied 9% on multiple catalysts including real-estate supply policy, data-center construction, and U.S. investment expectations.
• Daewoo E&C jumped 14% after delivering operating profit well above consensus, reinforcing the sector's momentum.
• SK Telecom and LG CNS rose on news that the 'National Representative AI' selection evaluation may be announced soon, though it remains an event-driven trade.
• Samsung Electronics and SK Hynix are argued to be excessively oversold; the selloff prices in a 30% earnings decline that appears unlikely given sustained hyperscaler capex.
• Big Tech debt is 80% long-term fixed-rate with an average 6-year maturity, so potential rate hikes pose little near-term risk to AI investment.
• Amazon's detailed capex disclosure (3-year server payback, 5-year contracts) shifted the market's view from fear of negative free cash flow to a more positive capex outlook, benefiting Alphabet and other hyperscalers.
• Ibiden delivered a strong earnings beat, raised guidance, and announced a stock split, making it a bright spot in semiconductor supply-chain uncertainty.
• Cloud rental margins are improving, but the speaker believes memory demand will ultimately rise with AI adoption, even if valuation multiples re-rate more slowly.