Name: Daily Morning Fund Managers' Operations Meeting Live | Park Se-ik Executive Director & Chesley Investment Advisory [Morning Brief / 26.08.18.Tue]
Uploaded: 2026-08-18T00:27:50+00:00
Duration: 6645 s

Speakers

Wang Bujang — China Market Analyst

Hae-soo Pro — Pro

Jun Yeok Joo-im — Analyst

Choi Ho — Vice President

Park Se-ik — CEO, ex-Chief Strategist

Summary

The KOSPI and global markets are navigating volatility driven by macroeconomic factors like high US Treasury yields and shifting exchange rates. However, strong fundamentals in AI infrastructure, memory semiconductors, and Korean holding companies present compelling investment opportunities. The KOSPI is particularly well-positioned due to a favorable reversal in the Won/Dollar exchange rate and world-leading earnings growth.

SMIC is operating at full capacity due to AI demand and China's localization efforts.
AMD and memory semiconductor companies are rallying on strong AI data center demand and solid corporate bond issuances.
Bitcoin miners shifting to AI data centers could reduce mining difficulty, potentially sparking a Bitcoin rally.
Alphabet's heavy AI capex will pressure free cash flow until 2027, making it a 'watch' for a turnaround.
Korean holding companies like GS are poised for a revaluation as domestic shareholder return rates improve.
The KOSPI is supported by a strengthening Won, attractive P/E multiples, and strong earnings momentum.
AI memory semiconductors are expected to enjoy structural multiple expansion due to long-term contracts stabilizing margins.

Ideas

Wang Bujang China Market Analyst 5:24

SMIC benefits from AI demand and localization.

SMIC is operating at full capacity due to robust AI demand and China's aggressive semiconductor localization efforts. The company delivered a strong Q2 earnings beat with improving product mix and rising ASPs, prompting Goldman Sachs to significantly raise its target price, reflecting SMIC's position as China's irreplaceable foundry.

Hae-soo Pro Pro 17:45

AMD benefits from Google collaboration and bonds.

AMD is seeing strong upward momentum driven by market speculation of a potential collaboration with Google on the next-generation TPU (V10 project) and a highly successful $4.75 billion corporate bond issuance, which demonstrated strong market confidence in its AI infrastructure role.

Hae-soo Pro Pro 19:39

Strong AI revenues drive memory semiconductor demand.

Memory semiconductor companies are rallying because strong AI service revenue run-rates from companies like Anthropic signal that hyperscalers will continue to aggressively purchase data center chips and memory to support AI monetization.

Hae-soo Pro Pro 23:57

Memory profit growth drives equipment investment.

Semiconductor equipment manufacturers are expected to benefit directly as the improving profitability of memory semiconductor companies translates into increased capital expenditures and equipment investments.

Jun Yeok Joo-im Analyst 26:48

Strong cash flow alleviates MicroStrategy dividend concerns.

MicroStrategy is successfully managing its dividend burden through strong cash flows and strategic capital allocation, such as selling common stock to purchase perpetual preferred stock. This alleviates market concerns about its debt obligations and supports its stock price.

Jun Yeok Joo-im Analyst 32:00

Reduced mining power sets up Bitcoin rally.

Bitcoin miners are increasingly shifting their power capacity toward AI data centers, causing their Bitcoin holdings to hit a 4-month low. This reduction in overall mining power increases the attractiveness and profitability for remaining miners, potentially setting up an 'empty house' rally for Bitcoin.

Choi Ho Vice President 42:53

Alphabet is attractive ahead of FCF inflection.

Alphabet's heavy AI capital expenditures will cause its free cash flow to bottom around 2027, but FCF is projected to surge dramatically in 2028-2029. With a strong net cash position, no EPS dilution from share issuance, and a valuation at the bottom of its 1-year P/E range, it is an attractive turnaround candidate to watch as its FCF reaches an inflection point.

Park Se-ik CEO, ex-Chief Strategist 71:01

Rising shareholder returns will revalue holding companies.

Korean holding companies like GS are significantly undervalued because the value of their subsidiaries is heavily discounted due to historically low shareholder return rates (around 30%). As Korea's overall shareholder return rates increase, holding companies will be the biggest beneficiaries of this structural revaluation.

Park Se-ik CEO, ex-Chief Strategist 102:12

Stronger Won and earnings growth support KOSPI.

The KOSPI is highly attractive because the Won/Dollar exchange rate trend has reversed in favor of a stronger Won, which will draw foreign capital. Furthermore, Korea boasts the highest earnings improvement rate globally, and market valuations have become cheap again following recent corrections.

Daily Morning Fund Managers' Operations Meeting Live | Park Se-ik Executive Director & Chesley Investment Advisory [Morning Brief / 26.08.18.Tue]

Summary

Ideas

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