GLOBAL VOLATILITY SETS TONE FOR THAI BOURSE

The Stock Exchange of Thailand (SET) swung with global bourses this week, facing a selloff prompted by worries about an artificial intelligence (AI) bubble, before an earnings surprise by Nvidia, which beat already high expectations, triggered buying again.

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Along with positive earnings guidance for the chipmaker, Nvidia chief executive Jensen Huang said it is premature to think about an Al bubble. He sees rising demand from real orders amid the biggest computer infrastructure transition in decades, as all industries are developing AI models and consistently require enormous processing power.

We also believe the “super cycle” for tech plays will persist through next year as a fresh round of development kicks in, starting with hardware and large language models, which will then turn into applications that will ignite changes in technology and global lifestyles. Therefore, we see trading opportunities in tech plays throughout next year.

We believe market consolidation amid bubble fears towards year-end provides opportunities to accumulate global tech stocks. For the Thai market, other than DELTA, which is in the hardware phase, we expect other sectors such as utilities (water, power and internet) to take their cues. The coming week is a fine time to collect related stocks and we recommend WHAUP, which has a high dividend yield at 6% to cushion any price volatility.