Name: [August 27th Closing Market Review] NVIDIA's strong earnings still failed to reach 7,000... The reason supply and demand shifted to the 'next runner' | Hong Seonae, Lee Gwonhui, Kim Jangyeol [Closing Bell Live]
Uploaded: 2026-08-27T08:28:02+00:00
Duration: 4405 s

Speakers

Kim Jang-yeol — Reporter, The Bell

Lee Kwon-hee — CEO, Economist

Summary

The market digested Nvidia's strong earnings, which featured highly encouraging guidance and surging demand from non-big tech clients. However, domestic index gains were muted as liquidity rotated away from large-cap semiconductors into power equipment, secondary batteries, and specific PCB suppliers. The Bank of Korea's consecutive rate hikes also influenced market sentiment and currency dynamics.

Nvidia projected 70% revenue growth for FY28, driven by robust neo-cloud demand.
Power equipment stocks surged on US executive orders restricting Chinese imports.
Battery Backup Units (BBUs) emerged as a new growth theme for Samsung SDI and its component suppliers.
Hyundai Motor disappointed investors by lacking concrete robotics updates during its Investor Day.
PCB makers with high SoCAM exposure, like TLB and Simmtech, outperformed peers.
Analysts suggest taking profits on recent winners like cosmetics to rotate back into AI hardware.

Ideas

Kim Jang-yeol Reporter, The Bell 22:07

Nvidia expects massive growth driven by neo-clouds.

Nvidia's earnings call was highly encouraging, with management expressing strong confidence in achieving 70% revenue growth for FY28, far exceeding market expectations. They are willing to accept a slight dip in gross margins to secure memory supply, which is positive for the broader supply chain, and non-big tech demand from neo-cloud providers is surging.

Lee Kwon-hee CEO, Economist 33:51

Power equipment benefits from US restrictions.

The power equipment sector rebounded strongly from support levels, driven by Nvidia highlighting power constraints as an AI bottleneck and a US executive order restricting Chinese power equipment. Korean companies with US factories benefit, and valuations remain undemanding around low 20s P/E.

Lee Kwon-hee CEO, Economist 37:04

Gaon Cable supplies AI data center cables.

Gaon Cable is surging as it recently supplied cables for AI data centers and completed on-site verification for new construction methods. As an LS Cable subsidiary, it is reflecting these positive developments somewhat late but with strong momentum.

Lee Kwon-hee CEO, Economist 43:35

Laggard battery materials offer better upside potential.

While Samsung SDI has run up on news of capacity expansion, POSCO FUTURE M and L&F offer better upside potential because they have given back all their gains since the ESS rally started last October, making their current entry points less burdensome.

Kim Jang-yeol Reporter, The Bell 45:41

Samsung SDI leads in server rack BBUs.

Battery Backup Units (BBUs) installed directly inside server racks are becoming crucial for high-density AI computing. Samsung SDI possesses superior technology in this specific niche, providing a positive thematic catalyst, even though the overall BBU market is smaller than EVs.

Lee Kwon-hee CEO, Economist 46:08

Cap suppliers benefit from prismatic BBU demand.

Samsung SDI uses prismatic batteries for BBUs, which require specialized caps that safely vent pressure to prevent explosions and data loss. Companies supplying these caps, such as Sangsin EDP and Shinheung SEC, directly benefit from the growing BBU theme.

Kim Jang-yeol Reporter, The Bell 50:17

Stronger Won and delayed momentum hurt shipbuilders.

The shipbuilding sector is cheap but lacks immediate momentum as expected US investments are delayed. Furthermore, a stronger Korean Won resulting from domestic rate hikes negatively impacts their profitability, making it a sector to wait on rather than buy aggressively.

Lee Kwon-hee CEO, Economist 54:44

Disappointing Investor Day delays Hyundai's robotics momentum.

Hyundai's Investor Day disappointed the market by focusing on traditional auto metrics and a minor share cancellation rather than expected robotics or Boston Dynamics IPO news. The stock is fairly valued as an automaker, so investors should wait for technical support to hold and accumulate slowly for long-term robotics potential.

Kim Jang-yeol Reporter, The Bell 66:03

TLB and Simmtech lead in SoCAM exposure.

Nvidia's emphasis on CPUs boosts demand for memory modules like SoCAM. TLB has the highest revenue exposure to this theme (15-20%), followed by Simmtech (~10%). Both companies also have solid underlying earnings, making them strong plays on this specific AI hardware trend.

Kim Jang-yeol Reporter, The Bell 66:05

Poor earnings and low SoCAM exposure.

Unlike TLB and Simmtech, Korea Circuit has poor earnings and very low exposure to the SoCAM theme (under 5%). A major analyst recently slashed its target price drastically, signaling fundamental weakness. Investors should avoid it or use bounces to switch to better peers.

Kim Jang-yeol Reporter, The Bell 72:15

Take profits on cosmetics as momentum shifts.

The cosmetics sector has run up significantly over the past six weeks. With AI momentum returning post-Nvidia earnings and a recent block deal by Silicon2's major shareholder stimulating profit-taking, it is a good time to reduce exposure and rotate into other sectors.

[August 27th Closing Market Review] NVIDIA's strong earnings still failed to reach 7,000... The reason supply and demand shifted to the 'next runner'

Summary

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