Today, all digital technologies are implemented through semiconductor chips. Therefore, technology is impossible without semiconductor chips. Semiconductors are involved in every technological innovation, from automobiles and mobile phones to even weapons. In other words, understanding that the advancement of technology accompanies the growth of semiconductors is key to future investment success.
Bae Jae-kyu, president of Korea Investment Trust Management, noted this on the 11th at the ACE big tech and semiconductor investment seminar held at the Conrad Hotel in Yeouido, Yeongdeungpo-gu, Seoul.
The seminar aimed to provide analyses from experts that can be referenced when investing in big tech and semiconductor corporations and to introduce the ACE exchange-traded fund (ETF). Speakers included Mark S.F. Mahaney, a tech analyst at Evercore ISI and author of The Absolute Principles of Investing in Tech Stocks; Kwon Seok-jun, a professor in the Department of Chemical Engineering at Sungkyunkwan University and author of The Three Kingdoms of Semiconductors; and Kim Seung-hyun, who is responsible for ETF consulting at Korea Investment Trust Management.
The seminar opened with remarks from Bae Jae-kyu, president of Korea Investment Trust Management. Bae said, "The present we live in can be defined as 'the age of technology,' and I hope today's seminar provides insights into investing in tech stocks."
The first speaker, Mark S.F. Mahaney, discussed how to choose quality tech stocks. Mahaney stated, "The common characteristic of quality tech stocks such as Google and Meta is rapid revenue and profit growth compared to other corporations. Even if there is no immediate profit, companies that maintain a high revenue growth rate for years can be excellent investment opportunities."
He added, "The market is always going to have volatility, and even quality corporations can see their stock prices decline significantly depending on market conditions. A good strategy is to identify stocks that have declined due to market conditions, referred to as 'fallen blue chips,' and buy them when they are cheap."
Next, Professor Kwon Seok-jun gave a presentation focused on the global semiconductor market. He analyzed, "With the advancement of the artificial intelligence (AI) industry, significant changes are occurring in the semiconductor ecosystem. Benefits will be concentrated on countries, corporations, or corporate clusters that can produce customized AI chips with high reliability and computational acceleration performance, not just simple AI semiconductor chips."
Kim Seung-hyun, responsible for the session, noted, "Investing in big tech and semiconductors is essential in the age of tech, and proactive preparation is needed given that AI will affect all industries in the future." He explained that the seminar was organized to provide principles relevant for long-term investments in associated corporations and prepare for long-term trends such as AI.
Kim added, "We are showcasing trendy product lineups related to semiconductors and big tech, such as the ACE Global Semiconductor TOP4 Plus SOLACTIVE ETF and the ACE U.S. Big Tech TOP7 Plus ETF, and providing investment-related content through the publication of a guidebook." He also stated, "ACE ETFs will continue to maintain excellent performance and provide high-quality investment content in the future."