[Chesley Morning Brief] New York Stock Market: Dow Mixed Amid Semiconductor Stock Surge…S&P500 and Nasdaq Hit 'Record Highs' [26/05/27]

Summary

The video covers the UBS Micron report that argues memory stocks deserve a structural re-rating due to long-term supply agreements, triggering a rally in US and Korean semiconductors. It also analyzes Lenovo's earnings, Korean shipbuilders (HD HHI and Hanwha Ocean) on data-center engine and submarine catalysts, and broader market dynamics with a focus on earnings momentum and valuation discipline.

• UBS raised Micron's target to $1,625 based on 15x forward P/E, citing structural change from LTAs.
• Memory industry sees 20-30% of DDR volume under fixed-price LTA, reducing cyclicality.
• Lenovo reported strong earnings with infrastructure business growing and margins improving.
• HD HHI highlighted as a long-term play on data-center gas engine and SMR manufacturing.
• Hanwha Ocean preferred for near-term trade on Canadian submarine project.
• Korean market rallied led by semiconductors, with Samsung Electro-Mechanics and other IT stocks hitting new highs.
• Speakers caution that high P/E names in semiconductor equipment may face risks.
• Bitcoin still weak relative to equities; Strategy's convert buyback is positive for equity but reduces Bitcoin demand.