Which Stocks Will Be the Main Characters for the Next Year? | Dr. So Hyeon-cheol & Executive Director Park Se-ik & Chesley Head of Learning [Byeoljubujeon / 26.07.11.Sat]

Which stocks will be the main characters for the next year? | Dr. So Hyeon-cheol & Executive Director Park Se-ik & Chesley Head of Learning [Byeoljubujeon / 26.07.11.Sat]

Watch on YouTube ↗ | July 16, 2026 at 21:00 | 46:19 | Chesley Investment Advisory (체슬리투자자문)

Speakers

So Hyeon-cheol — Adjunct Professor, Sangji University

Summary

Dr. So Hyeon-cheol presents a geopolitical investment thesis, arguing that US-China rivalry will shift market leadership from semiconductors to Korean shipbuilding and defense. He explains the history of Japan's semiconductor decline and how the same playbook is now benefiting Korea's shipyards as the US urgently needs warships. Space and nuclear-powered ships are long-term themes to watch.

Dr. So reviewed the semiconductor super-cycle driven by AI and US-China tech war.
He highlighted Japan's semiconductor collapse due to US policy, drawing parallels to current US-China competition.
He identified a rotation from semiconductors to shipbuilding as the key theme for the next year.
Korean shipbuilders (Hanwha Ocean, HD Hyundai Heavy Industries) are positioned to benefit from US Navy fleet renewal and global demand.
The space sector, led by Hanwha Aerospace, offers long-term potential but is secondary to shipbuilding near term.
Semiconductor giants Samsung Electronics and SK Hynix face moderating returns and should be avoided or reduced.
The discussion covered nuclear-powered ships and KF-21 fighter as future growth drivers.

Ideas

So Hyeon-cheol Adjunct Professor, Sangji University 23:35

Shipbuilding will lead next year's market.

Korean shipbuilding and defense stocks are poised to outperform over the next year as the US-China maritime competition intensifies. The US Navy faces a severe shortage of modern warships, with China building far more vessels, and US shipbuilding capacity has collapsed. The US is turning to Korea for warship construction, as evidenced by recent requests and high-level visits. Korea's Hanwha Ocean excels in submarines (including potential nuclear-powered subs) and HD Hyundai Heavy Industries builds advanced Aegis destroyers. Canada's recent decision to use a German design over Korea's was political but validates Korea's submarine technology. Future orders from Saudi Arabia and other nations are likely, and the shift from commercial LNG/container ships to naval vessels represents a significant structural growth opportunity. Additionally, HD Hyundai is preparing nuclear-powered commercial ships, adding a long-term catalyst. The rotation from semiconductors to shipbuilding is timely as the semiconductor super-cycle matures.

So Hyeon-cheol Adjunct Professor, Sangji University 34:33

Watch space stocks for long-term growth.

The space sector is a long-term megatrend supported by government initiatives (Korea plans to grow its space industry from KRW 11 trillion to 70% more in 10 years, and lead 6G satellite communications). Hanwha Aerospace is the dominant Korean space/defense name, involved in satellite assembly, space launch vehicles, and the KF-21 fighter radar systems. However, near-term the shipbuilding cycle is more immediate; space is more of a multi-year theme. Investors should watch for entry points as the long-term story develops, but be aware of the near-term overhang in US space stocks like SpaceX.

So Hyeon-cheol Adjunct Professor, Sangji University 40:12

Avoid semiconductors as supercycle fades.

After a massive semiconductor rally driven by AI capex, the earnings super-cycle for Samsung Electronics and SK Hynix is likely moderating. The DRAM price spike (up 600-700%) may not be sustained; Nvidia's monopoly in AI chips is breaking, leading to a shift toward custom ASICs and custom HBM, which limits mass production economies and puts pressure on margins. Korean memory makers still face cycles, albeit with reduced amplitude. Valuations and profit expectations need to be trimmed, and the relative attractiveness has shifted to other sectors like shipbuilding. Investors should reduce exposure to these semiconductor heavyweights.

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This Chesley Investment Advisory (체슬리투자자문) video, published July 16, 2026, features So Hyeon-cheol discussing 042660.KS, 329180.KS, 012450.KS, 000660.KS, 005930.KS. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: So Hyeon-cheol · Tickers: 042660.KS, 329180.KS, 012450.KS, 000660.KS, 005930.KS