[R&E] The 'Supercycle' Launched by AI Infrastructure: Structural Leaps in Semiconductors, Nuclear Power, and Mobility

[R&E: Research & Epoch]
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Market Overview: Key Indicators and Trends

As the U.S. stock market hits record highs driven by Big Tech's strength, this trend is expected to have a positive ripple effect on the domestic AI and semiconductor sectors. Although political variables exist, such as former President Trump's remarks on financial policy, the market is digesting these issues, and rotational trading between sectors is actively taking place even amid a wait-and-see attitude. In particular, the Japanese yen's weakness stood out due to the issue of Japanese Prime Minister Takaichi's early general election, leading to a higher closing of the KRW/USD exchange rate. This is analyzed as a factor that could bring subtle changes to the translated profit scale of export companies.

Key Industry Issues and Insights

With the explosive increase in demand for global artificial intelligence (AI) data centers, the structural growth of the domestic semiconductor core supply chain is accelerating. In particular, ISU PETASYS, which produces the multi-layer printed circuit boards (PCBs) essential for AI accelerators, is directly benefiting from the expansion of TSMC's CoWoS capacity based on its unrivaled market share within the global TPU value chain. Its consolidated performance for 2026 is expected to significantly exceed market consensus, with revenue of 1.57 trillion KRW (+33% YoY) and an operating profit of 334.6 billion KRW (+60% YoY). Most notably, it has entered a structural inflection point where its average selling price (ASP) will explosively increase by at least two times as it transitions to ultra-high multi-layer boards of mid-30 layers or more starting with the V8X boards in the second half of 2026.

This semiconductor upcycle is also boosting the earnings outlook for materials companies. Driven by growth in the semiconductor sector, Hansol Chemical is also expected to achieve record-high performance, surpassing 1 trillion KRW in revenue and experiencing a 31% growth in operating profit year-on-year in 2026, thanks to increased volumes bound for M15X/P4. On the other hand, the surging power demand from data centers is simultaneously inducing investment flows into the energy infrastructure sector. News that Big Tech companies like Meta have signed nuclear energy supply contracts acted as a key trigger to improve the overall investment sentiment in the domestic nuclear power sector. Hyundai E&C has secured growth visibility through its SMR business cooperation with Holtec and the receipt of subsidies from the U.S. Department of Energy (DOE), and expectations of benefits are also concentrated on nuclear power supply chain companies including Doosan Enerbility.

Meanwhile, the automotive industry has entered a revaluation phase that goes beyond the value of simple manufacturers. For both Hyundai Motor Company and Kia, fourth-quarter earnings are expected to fall short of market expectations, but their target P/E has been revised upward. This reflects improvements in their future responsiveness to SDV (Software Defined Vehicle), robotics, and Physical AI businesses, and attention should be paid to the possibility of implementing a 'brownfield strategy' where automotive assets are revalued through expansion into growth industries. In the gaming industry, Netmarble, Com2uS, and NCSOFT are preparing for an earnings turnaround driven by new release momentum and cost efficiency.

Market Signals

• Surge in High Multi-Layer Board ASP: Upon transitioning to V8X in the second half of 2026, ISU PETASYS's average selling price (ASP) for high multi-layer boards is expected to explosively increase by at least two times, acting as a core driver of structural growth.

• Expectations of Record-High Semiconductor Materials Earnings: Driven by growth in the semiconductor sector, Hansol Chemical is expected to achieve record-high earnings in 2026, surpassing 1 trillion KRW in revenue along with a 31% increase in operating profit year-on-year.

• High Dividend Appeal of the Securities Sector: Both NH Investment & Securities and Samsung Securities are seeing their valuation appeal highlighted with expected dividend yields reaching the 6.8%~6.9% level in 2026, and a level-up in their fundamental earnings capacity is anticipated going forward.

• Gaming Stocks Earnings Surprise: Com2uS is expected to post a fourth-quarter earnings surprise thanks to new release revenue and cost efficiency, while NCSOFT is expected to turn a profit due to favorable user metrics for <Aion 2> and the effects of introducing its own payment system.

Epoch View: Investment Implications

Currently, the market's investment perspective is clearly diverging into two axes: future growth drivers (AI infrastructure, SDV) and undervalued value (high-dividend financial stocks, K-Food). Investors need a long-term approach toward sectors with certain structural growth rather than focusing on short-term market volatility. The semiconductor materials and high multi-layer PCB sectors, which are the core of AI infrastructure, are leading value appreciation across the entire supply chain, and selective investment is particularly required for stocks expected to see a sharp ASP rise after 2026. Furthermore, the securities sector, which provides solid cash flows and high dividend yields, serves as an excellent defensive tool during market corrections while simultaneously offering valuation appeal. Since Samyang Foods, which is building a 'K-Category' in the global market based on K-Culture, and K-Beauty related stocks are also expected to sustain growth, continuous tracking is necessary from the perspective of portfolio diversification.

This content was generated by News Epoch's proprietary AI algorithm, which tracks and analyzes public data from research centers of major domestic securities firms in real-time.
Please note that this is an objective summary based on collected data and does not constitute a solicitation or recommendation to invest in any specific stock.