AI investment 2nd round, from GPU to power·industrial goods·space

The market has been showing an interesting scene recently. On one hand, profit taking is occurring in leading AI semiconductor stocks. Broadcom's earnings were not bad, but there was no additional upward revision to AI guidance to the extent the market had expected. As a result, profit taking occurred in some parts of the AI value chain. However, there is a more important point. It's not that AI related funds are leaving the market; rather, they are moving elsewhere. Indeed, in the recent U.S. market, funds are seen shifting towards industrial goods, power, healthcare, and AI infrastructure related stocks. In China, the AI hardware and robotics supply chain continues to show strength. The core point, as I see it, is simple. AI is not over; rather, AI bottlenecks are expanding beyond GPUs. This week's market and U.S. employment figures were another example demonstrating this trend. 1. Stronger than Expected U.S. Employment This U.S. employment report came out much stronger than expected. Indicator Actual Expected Non Farm Payrolls (NFP) 172K 85K Private Payrolls 120K 85K Unemployment Rate 4.3% 4.3% Average Hourly Earnings (YoY) 3.4% 3.4% Looking at the headlines alone, it's a very strong employment report. However, a closer look at the details reveals a slightly different picture. Key Growth Sectors Increase Size Leisure & Hospitality +70K Government +52K Education & Healthcare +40K Conversely, Finance 22K Information Services 2K Wholesale & Retail 3.7K were relatively sluggish. In other words, this employment growth was characterized more by increases in government, healthcare, and service sectors rather than an explosive improvement in manufacturing or IT. 2. Market Interpretation Reflected in Interest Rates and Exchange Rates Following the employment announcement, U.S. Treasury yields rose rapidly. Maturity Yield U.S. 2 year 4.12% U.S. 10 year 4.54% U.S. 30 year 5.02% From the market's perspective, “The U.S. economy is still robust, more than expected” This was interpreted as a signal. The KRW/USD exchange rate also rose to ₩1,550. While many interpret the won's weakness solely as a Korean issue, the strength of the dollar played a significant role this time. Market participants are once again U.S. growth U.S. interest rates U.S. assets moving in a direction that favors. 3. But Why Did AI Take a Break? This week, AI related stocks showed a somewhat subdued performance. The direct trigger was Broadcom's earnings. AI revenue remained strong, but there was no additional upward revision to the extent the market had expected, leading to profit taking, especially in AI semiconductor stocks that had risen significantly. However, the important point here is that funds did not leave the market. What the market chose were other AI beneficiaries. 4. From GPUs to the Entire System When discussing AI infrastructure, many investors still first think of GPUs. Of course, GPUs are still important. However, what the market is showing recently is a slightly different direction. AI semiconductor demand doesn't end with just GPUs. As AI data centers increase, what's also needed is Power Cooling Optical Communication Packaging Servers Network Industrial Infrastructure Indeed, looking at the stocks that have shown strength recently, this trend is visible. Theme Key Area Reason for Focus Power Transformers & Power Equipment AI Data Center Power Demand Industrials Cooling & Equipment Expanding Infrastructure Construction Optical Communication Optical Fiber & Optical Modules Increasing AI Traffic Space Satellites, RF, & Communication Expansion of AI and Data Infrastructure Healthcare Expanding AI Utilization Defensive Nature and Growth Potential If AI investment Round 1 was GPUs, AI investment Round 2 can be seen as the entire system. 5. China is Moving in Another Direction The Chinese market is also interesting. Currently, AI hardware in China is stronger than the overall index. The key is CXMT YMTC Unitree the anticipation of large IPOs from companies like. As AI localization and the expansion of the robotics industry intertwine, Semiconductors Servers Optical Communication Robotics supply and demand are spreading across the entire value chain. The Chinese market currently appears to be driven by AI self sufficiency and supply chain construction as a more important investment thesis than economic recovery. 6. Space Can Also Be Part of the AI Supply Chain One of the areas I've been watching with interest recently is space. Many people think of rocket companies when they hear 'space industry,' but the actual supply chain is much broader. For example, $APH Amphenol $TEL TE Connectivity $MCHP Microchip $ADI Analog Devices $KEYS Keysight $QRVO Qorvo $VECO Veeco are deeply connected to the supply chains for satellites, RF, test equipment, and space grade solar cells. As the data generated by AI increases, eventually Communication Network Satellite Infrastructure demand will also increase. This trend is less of a short term theme and m