Summary
Highlights
Hyundai Motor Company, once a focus, is now experiencing a decline, failing to garner market attention. The momentum from physical AI seems to have faded. While Hyundai is down more than 2%, the speaker suggests looking into other Hyundai Group affiliates like Hyundai AutoEver or Mobis. Hyundai Mobis is also slightly down, and Hyundai AutoEver, related to SI, is down approximately 3%. Hyundai Motor is comparatively down about 2%.
The recent momentum for Hyundai was driven by robotics, not its core automotive business. The speaker believes Mobis might show greater upward momentum if the market recovers. However, in a negative market, all related stocks tend to fall. A short-term momentum factor could be SoftBank's 9% stake in Boston Dynamics, which has a put option expiring this month. There's speculation about Samsung Electronics potentially acquiring these shares if SoftBank sells, which could create synergy between Hyundai and Samsung, indirectly.
The market is currently focusing on this potential transaction. The overall sentiment around robotics is somewhat dampened, possibly due to interest rate hikes by the ECB and the recent FOMC meeting. While the long-term growth and market size for robotics are undeniable, it is a sector that requires significant investment, making it sensitive to interest rate fluctuations. This sensitivity might be the reason for the current wavering in the robotics sector.
The speaker concludes that, in the short term, the robotics sector, including Hyundai Motor and other light robotics-related stocks, might not be a favorable investment. However, from a medium to long-term perspective, robotics is seen as the ultimate frontier of AI, a sentiment shared by many market participants. Therefore, investing with a broader outlook is crucial, and those looking for quick returns or stressing over short-term dips might be better off avoiding these stocks.