Semiconductors are incredibly undervalued compared to microns, and Samsung Electronics has a valuation of less than half that of microns... (Hanick seems to be around 60%.)
So, is the overall national leader undervalued? You might think so,
But looking at just the recent rise in power facilities, it was 120% higher than the US based on the May high.
And currently, the most overheated substrate, Samsung Electric, is receiving a valuation of over 200% alone.
Of course, there's an argument that Samsung Electric deserves such a high valuation because it makes everything except top-tier memory chips, but personally, I think it's overvalued until the results come out.
Robotics is also highly valued despite having no track record, and the recent visit by Jensen Huang has further increased its valuation.
The only undervalued sectors are cooling, autonomous driving, AI medical care, AI security, and AI software. However, compared to the US, there's a significant difference in technology, so while it appears undervalued on paper, the valuation relative to technological capabilities is not comparable to the US.
Among the mentioned sectors, except for semiconductors, power and substrates are the only sectors that could potentially see an increase in valuation relative to technological capabilities.
Especially in the case of power, after a sharp rise on Monday followed by a larger adjustment, it reached a valuation of about 80% compared to the US power sector, which is surging today. I believe that when the adjustment period ends, there will be a significant rebound equal to the extent of the previous adjustment.
There are also assessments that the power sector is unexpectedly not a bottleneck, but considering that IDC centers are expected to be built significantly and order backlogs are increasing, it seems likely to rise by the end of this year.
In any case, ultimately, nothing compares to semiconductors. Recently, when other sectors are weak, selling pressure is directed towards semiconductors, leading to a surge in supply and demand. Even though leveraged products have recently emerged, the semiconductor sector has not experienced significant adjustments, while other stocks are undergoing larger adjustments.
The Jensen Huang theme stocks have been pumping dopamine for the past few days, but it's time to think calmly about when to secure cash and where to increase weight.
