NVIDIA's Strong Earnings and 70% Growth Forecast Spark Semiconductor Rally
[August 28 #BeforeMarketOpen] NVIDIA's strong earnings and '70% growth forecast next year' lead to 8.7% surge, semiconductor stock rally, New York stock market rise / Will KOSPI break 7000?
Speakers
Oh Hyun-jin
— Team Lead
Kim Hyeong-cheol
— CEO, Kim Hyung-chul Research Institute
Lee Ju-hyeon
— Director, Xangle
Lee Kwon-hee
— CEO, Economist
Summary
In this market analysis, multiple experts including Oh Hyun-jin and Kim Hyung-chul dissect the impact of NVIDIA's stellar earnings report and its bullish 70% growth forecast. The discussion highlights a strong positive outlook for the entire AI hardware supply chain, from HBM memory to substrates and power equipment, with specific Korean companies identified as key beneficiaries. The conversation also explores the next phase of the AI theme, focusing on software monetization, cybersecurity, and data platforms, while also covering other promising sectors like cosmetics, construction, and secondary batteries in the context of a rotational market.
- NVIDIA's strong earnings and a 70% growth forecast for next year have dispelled 'peak AI' fears and boosted the semiconductor sector.
- The AI demand is driving a need for performance upgrades across the entire supply chain, benefiting makers of HBM, substrates, MLCCs, and power equipment.
- Analysts see the AI investment theme expanding from hardware to software, with cybersecurity and data platforms becoming the next key areas of focus.
- A weakening US dollar is creating tailwinds for alternative assets like Gold and Bitcoin, and is contributing to the strengthening of the Korean Won.
- In the Korean market, a rotational strategy is recommended, focusing on sectors with strong fundamentals like power equipment, defense, shipbuilding, and cosmetics.
- Specific Korean companies like Samsung Electronics, Samsung SDI, and OCI Holdings are highlighted for unique catalysts related to Chinese AI development, valuation, and US policy shifts.
- The foldable phone market is identified as a major growth driver, benefiting component suppliers as Apple is expected to enter the market.
- The crypto and stablecoin theme is gaining momentum, driven by rising Bitcoin prices and potential US legislation (Clarity Act).
Ideas
NVIDIA's strong forecast validates AI boom.
NVIDIA's forecast for 70% revenue growth next year, crushing the 45% Wall Street consensus, confirms the AI boom is far from over. This demand is not just from hyperscalers but also from a new wave of 'neo-cloud' companies and other enterprises. This directly translates to massive demand for HBM memory, which is a major positive for the Korean semiconductor ecosystem. Amazon's large order of 2 million GPUs, despite having its own custom chips, further validates the explosive and unmet demand for AI infrastructure, dispelling any 'peak AI' narratives.
Korean batteries benefit from US policy.
Korean secondary battery stocks are showing strong momentum, led by Samsung SDI. This is driven by two main factors: 1) The US continues to implement policies that curb Chinese competitors, creating a direct benefit for Korean manufacturers. 2) CATL's decision to halt the restart of a lithium mine could support long-term lithium prices, which benefits materials companies first through inventory revaluation and subsequently boosts cell makers.
NVIDIA's CPO adoption boosts optical stocks.
NVIDIA CEO Jensen Huang's recent comments about the adoption of Co-Packaged Optics (CPO) are a significant catalyst for the optical communication sector. CPO technology, which integrates optical and electronic components, is crucial for next-generation data centers. This has sparked interest in related Korean stocks like Lightron and O-esolution, which are involved in the optical communication value chain.
US power grid emergency benefits Korean transformers.
The US declaration of a national emergency for its power grid is a positive catalyst for Korean transformer manufacturers. Companies like HD Hyundai Electric, Hyosung Heavy Industries, and LS Electric are well-positioned to benefit as they all have manufacturing facilities in the US. While the sector is already experiencing shortages, this policy move reinforces the demand story and provides a tailwind, especially as it aims to reduce reliance on foreign, particularly Chinese, equipment.
Nuri rocket launch is catalyst for aerospace.
The upcoming 5th launch of the Nuri rocket, scheduled for October 7, serves as a key catalyst for the Korean aerospace sector. A significant aspect of this launch is the increasing shift from government-led to private-sector-led initiatives, with Hanwha Aerospace taking a leading role. This transition to a commercial model is a positive structural change for the industry, also benefiting companies like Korea Aerospace Industries (KAI) and Satrec Initiative.
Weakening US dollar favors Gold, Bitcoin.
There is a structural weakening of the US dollar due to declining global preference for both the dollar and US Treasuries, driven by policy uncertainty and concerns over US national debt. In this environment, assets that are priced in dollars or serve as an alternative store of value are likely to perform well. Gold and Bitcoin are prime beneficiaries of this trend and are expected to show continued strength.
Weakening US dollar favors Gold, Bitcoin.
Bitcoin and crypto-related assets are attractive due to a confluence of factors. The US Treasury's bond buybacks are injecting liquidity and weakening the dollar, making alternative assets more appealing. More importantly, the proposed 'Clarity Act' for stablecoins in the US provides a powerful structural catalyst. By requiring stablecoins to be backed by short-term US Treasuries, it will create massive, institutional demand for Treasuries and legitimize the entire crypto ecosystem, benefiting players like Woori Technology Investment.
Korean Won will continue to strengthen.
The Korean Won is poised to continue its strengthening trend against the US dollar. This is driven by two main forces: the broad-based structural weakness of the US dollar globally, and the hawkish monetary policy of the Bank of Korea, which is continuing to raise interest rates. This combination provides a strong tailwind for the Won.
Korean nuclear sector has upcoming catalysts.
The Korean nuclear power sector warrants attention due to recurring positive catalysts. An upcoming US-Korea energy investment project could include nuclear power initiatives. Persistent talk around potential deals, like a stake in Westinghouse, keeps the sector in focus. Key stocks to watch are Doosan Enerbility and KEPCO E&C, as the theme continues to develop.
Microsoft shows superior relative strength in tech.
Among big tech hyperscalers, Microsoft's stock chart is showing superior relative strength. While peers like Amazon, Meta, and Google have been weakening post-earnings, Microsoft has held up much better. This resilience likely stems from the market's recognition of its clearer path to AI monetization, leveraging its entrenched ecosystem of enterprise software like Windows and Office. Its investment in OpenAI is another significant positive differentiator.
Cybersecurity is a foundational AI play.
The cybersecurity sector is a crucial and early beneficiary of the expanding AI software ecosystem. As companies develop and deploy new AI applications, robust security becomes a non-negotiable prerequisite. This is reflected in the strong performance of stocks like CrowdStrike, which recently hit an all-time high, and the CYBER ETF. This sector represents a foundational investment before the full-fledged AI software boom.
Data platform companies are essential for AI.
Data is the fuel for AI, making data platform companies essential to the ecosystem's growth. Companies like Snowflake, Datadog, and MongoDB are key players to watch. He specifically highlights that any potential price drop in Snowflake following its upcoming earnings would represent a significant buying opportunity, given the long-term structural demand for data infrastructure.
IBM is a safe quantum computing play.
IBM is the most sensible large-cap investment in the emerging quantum computing theme. Its core strength lies in its deeply entrenched position within the financial industry, which relies on its data stacks. As financial institutions inevitably adopt quantum computing and require enhanced security, they are highly likely to partner with a trusted, established vendor like IBM. The stock's recent post-earnings dip presents an attractive entry point.
Rotate between Shipbuilding, Defense, Power, Cosmetics.
The Korean stock market is currently range-bound, which favors a rotational trading strategy. Investors should focus on four key sectors that have strong fundamentals, backed by solid order backlogs and earnings visibility: Shipbuilding, Defense, Power Equipment, and Cosmetics. The optimal strategy is to buy these sectors during periods of correction and sell into strength, rotating capital among them as they take turns leading.
HBM investment cycle benefits Korean equipment makers.
Despite near-term volatility, the outlook for Korean semiconductor materials, parts, and equipment (So-Bu-Jang) companies is strong. SK Hynix's new HBM packaging plant in the US, while a long-term project, signals a continued cycle of heavy investment in advanced packaging. This creates a sustained tailwind for the entire HBM supply chain, particularly in post-processing and packaging. Any market-driven dips in these stocks should be viewed as buying opportunities.
Crypto benefits from liquidity and regulation.
Bitcoin and crypto-related assets are attractive due to a confluence of factors. The US Treasury's bond buybacks are injecting liquidity and weakening the dollar, making alternative assets more appealing. More importantly, the proposed 'Clarity Act' for stablecoins in the US provides a powerful structural catalyst. By requiring stablecoins to be backed by short-term US Treasuries, it will create massive, institutional demand for Treasuries and legitimize the entire crypto ecosystem, benefiting players like Woori Technology Investment.
US stablecoin act is a catalyst.
The upcoming 'Clarity Act' in the US is a major catalyst for the stablecoin ecosystem. This legislation will formalize the industry and drive significant growth. Investors can gain exposure through several avenues: faster-moving, more speculative stocks like Danal and Hecto Financial, or more fundamentally sound, large-cap companies like Naver, LG CNS, and Samsung SDS, which are also building capabilities in this space.
K-Food companies are becoming export growth stories.
Korean food companies like Nongshim and Samyang Foods are undergoing a structural re-rating. Driven by the global popularity of K-Food, they are successfully transitioning from being perceived as stable domestic-focused businesses to high-growth export-oriented companies. This shift in their business model and market perception is a powerful driver for their stocks.
OCI Holdings benefits from US anti-China policy.
OCI Holdings has a distinct competitive advantage in the renewable energy sector. It is the only major Korean company that manufactures its own inverters, unlike competitors who often rebrand Chinese products. As the US increasingly moves to exclude Chinese components from its energy infrastructure, OCI is uniquely positioned to capture market share. The stock is currently in a technical consolidation pattern, poised for a potential breakout.
AI theme is shifting to software monetization.
A significant shift is occurring in the AI investment theme. NVIDIA CEO Jensen Huang's recent declaration that 'AI is finally starting to make money' signals an inflection point. This has catalyzed a rally in AI software companies like Salesforce and Palantir, indicating that the market is now looking beyond the initial hardware build-out phase towards the monetization of AI through software and services.
Samsung benefits from China's inefficient AI chips.
Samsung Electronics is uniquely positioned to benefit from China's efforts to build its own AI capabilities. To circumvent US sanctions, Chinese tech giants are developing their own, less efficient AI accelerator chips. These chips require significantly more memory to function, creating a new stream of demand for Samsung's memory products. Additionally, these Chinese firms are likely to rely on Samsung's foundry services for manufacturing, making Samsung a dual beneficiary of both the US-led AI boom and China's response to it.
Crypto momentum and STO laws favor stocks.
The combination of Bitcoin's price momentum and legislative progress on Security Token Offerings (STOs) in Korea creates a favorable environment for related small and mid-cap stocks. Galaxia Monetree, a Hyosung Group affiliate with a partnership with Circle, is a key player. Other companies like LG CNS and Danal are also well-positioned to benefit from this theme as it gains traction.
Korean construction has multiple growth drivers.
The Korean construction sector is attractive due to a multitude of powerful, concurrent growth drivers including urban redevelopment, data center construction, semiconductor cluster build-outs, and potential nuclear and overseas reconstruction projects. Specific plays include Daewoo E&C for Middle East and nuclear exposure, Hyundai E&C for its role in nuclear projects, and Samsung E&A for its leadership in building semiconductor facilities.
Foldable phone market growth benefits hinge makers.
The foldable phone market is a key growth area in the otherwise stagnant smartphone industry, with an expected 18% CAGR. The market is expanding beyond Samsung, with Chinese firms and, most importantly, Apple expected to enter by 2026. This creates a growing opportunity for component suppliers, especially for critical parts like hinges. This makes Korean hinge makers like KH Vatec and Finetek attractive.
RFHIC is a direct Korean CPO beneficiary.
In the Co-Packaged Optics (CPO) space, direct Korean beneficiaries are limited, but RFHIC and its subsidiary RF Materials have a clear and verifiable link. They supply pump laser packages to Lumentum, which is a key player in the CPO ecosystem being built around NVIDIA and Broadcom. This positions them as one of the few pure-play ways to invest in the CPO theme through the Korean market.
Cosmetic OEM and distributors are undervalued.
There is a valuation disconnect in the Korean cosmetics sector. Finished brand companies trade at a PER of 20-25x, while OEM/ODM manufacturers (Cosmax, Korea Kolmar) and distributors (Silicon2) trade at a lower 15x PER. Given that the industry's growth is currently driven by indie brands that heavily rely on these OEMs and distributors, this valuation gap is unwarranted and likely to narrow, making the latter group more attractive.
Up Next
This 815 Money Talk (815머니톡) video, published August 28, 2026, features Oh Hyun-jin, Kim Hyeong-cheol, Lee Ju-hyeon, Lee Kwon-hee discussing NVDA, SMH, Korean secondary battery sector, 006400.KS, O-esolution, Lightron, 097530.KS, 298040.KS, 010120.KS, 012450.KS, 047810.KS, 099320.KQ, GOLD, BTC, USD/KRW, 052690.KS, 034020.KS, MSFT, CRWD, CYBER, SNOW, DDOG, MDB, IBM, Korean defense sector, Korean shipbuilding sector, Korean Power Equipment Sector, KORU, 471990.KS, 041190.KQ, 064260.KQ, 234340.KQ, 035420.KS, 003230.KS, 004370.KS, 010060.KS, IGV, 005930.KS, 094480.KQ, 000720.KS, 047040.KS, 028260.KS, KH, 131760.KQ, RFHIC, 327260.KQ, 192820.KS, 257720.KQ, Cosmax. 26 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Oh Hyun-jin, Kim Hyeong-cheol, Lee Ju-hyeon, Lee Kwon-hee · Tickers: NVDA, SMH, Korean secondary battery sector, 006400.KS, O-esolution, Lightron, 097530.KS, 298040.KS, 010120.KS, 012450.KS, 047810.KS, 099320.KQ, GOLD, BTC, USD/KRW, 052690.KS, 034020.KS, MSFT, CRWD, CYBER, SNOW, DDOG, MDB, IBM, Korean defense sector, Korean shipbuilding sector, Korean Power Equipment Sector, KORU, 471990.KS, 041190.KQ, 064260.KQ, 234340.KQ, 035420.KS, 003230.KS, 004370.KS, 010060.KS, IGV, 005930.KS, 094480.KQ, 000720.KS, 047040.KS, 028260.KS, KH, 131760.KQ, RFHIC, 327260.KQ, 192820.KS, 257720.KQ, Cosmax