Summary of Conference Call Industry and Company Overview - The discussion revolves around the investment themes identified by Morgan Stanley for 2026, focusing on four core themes: Artificial Intelligence, Energy Future, Multipolar World, and Social Change [1][2] Key Points and Arguments 1. Core Themes for 2026 - The four key themes for 2026 are: - Artificial Intelligence (AI) - Energy Future - Multipolar World - Social Change (an evolution of last year's theme on Longevity) [1][2] 2. Evolution of Artificial Intelligence - Significant advancements in AI and text diffusion are expected, particularly in the development of Large Language Models (LLMs) [2] - U.S. LLM developers are anticipated to have ten times the computational power compared to last year, leading to unprecedented model capabilities [2] - Chinese models are expected to lag due to insufficient computational resources, although they excel in providing low-cost solutions for practical business scenarios [2] - A mismatch between the demand and supply of computational power is projected, with demand expected to systematically exceed supply, making computational power a scarce resource [3] 3. Energy Future - The energy landscape has changed significantly over the past year, with a notable power gap in the U.S. data centers estimated at approximately 47 GW, even accounting for innovative power supply solutions [5] - Rising electricity costs for consumers are increasingly being attributed to data centers, leading to negative public sentiment and potential delays or cancellations of planned data center projects [5] 4. Multipolar World Dynamics - The multipolar theme has gained prominence, driven by aggressive U.S. policy agendas aimed at manufacturing return and military spending on new technologies [6] - The relationship between AI technology transfer and rare earth elements is highlighted, with potential pressures from China on the U.S. regarding AI technology in exchange for rare earth supplies [6] 5. Social Change and Labor Market Impact - The social change theme encompasses issues related to aging populations and the impact of AI on the labor market, with an estimated 90% of jobs expected to be affected by AI [8] - The focus is on how job roles will evolve rather than outright job losses, with many workers expected to adapt through skill reshaping [8] 6. Performance of Investment Themes - In 2025, the thematic stocks under the four core themes outperformed the MSCI World Index by 16 percentage points and the S&P 500 Index by 27 percentage points [8] - The top-performing categories were driven by the multipolar world theme, particularly in critical minerals, AI semiconductors, and defense sectors [8] Other Important Insights - The interplay between the identified themes is crucial, as they are not isolated but rather intersecting, leading to broader market implications [2] - The discussion emphasizes the importance of long-term signals over short-term market noise, particularly in high-volatility periods [1]

Group 1 - The core viewpoint of the article highlights the rise of NPU-based companies in the semiconductor industry, particularly in the AI sector, as they secure significant deals with industry leader NVIDIA, indicating a shift in market dynamics [1] - The global AI fabless market is evolving through technological competition and mergers, with key players including Groq, SambaNova Systems, Cerebras, Tenstorrent, and Korean companies Rebellions and FuriosaAI [1] - NVIDIA's acquisition of Groq's core technology rights for $20 billion (approximately 29 trillion KRW) is noted as the largest deal in NVIDIA's history, significantly boosting Groq's valuation to around $7 billion, nearly tripling its worth [1] Group 2 - Cerebras has signed a $10 billion (approximately 14 trillion KRW) computing power supply contract with OpenAI and is in talks to raise $1 billion in new investments [2] - The NPU industry is expanding its business scope from chip supply to server and data center infrastructure, with a focus on the Middle East's demand for "autonomous AI" to reduce reliance on US and Chinese technology [2] - Rebellions is targeting the Saudi data center market with its REBEL-Quad product, which is said to perform comparably to NVIDIA's flagship GPU [2] Group 3 - Rebellions' CEO expressed concerns about the competitive landscape, noting that countries like the US and China are building AI infrastructure using non-NVIDIA products for supply chain diversification [3] - The CEO highlighted that Saudi Arabia purchased Groq chips worth 750 billion KRW last year, while the UAE bought Cerebras chips worth 1.5 trillion KRW, contrasting with Rebellions' government revenue of only 7 billion KRW [3] - Rebellions plans to begin mass production of REBEL-Quad in the first half of the year, while FuriosaAI aims to supply up to 20,000 RNGD units by the end of the year [3]