The following is a comment written by individual investor "G有限亭玉介" of Fisco Social Reporter (blog: Profitable Stock Information "Cat Husband's Stocks are Limitlessly High"). At Fisco, efforts are made to actively disseminate diverse information to investors by collaborating with individuals who proactively share information.

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※ Written on December 15, 2024, at 11:00

Concerns have spread that the AI semiconductor boom may be fading, as the Dutch ALSM's Q3 2024 earnings did not meet market expectations. However, it is hard to believe that the AI boom will come to an end so easily.

Once again, my name is G有限亭玉介, and I am writing the stock and cat blog "Profitable Stock Information 'Cat Husband's Stocks are Limitlessly High'."

The AI sector has begun to spread across various industries, and the development competition will intensify even further from here. However, since the term AI is too broad, it is necessary to analyze specific business types in more detail when conducting stock analysis.

In Japan, the image of AI is often related to generative AI like ChatGPT, but in the USA, fully unmanned taxis are already driving on public roads with self-driving technology, and AI has developed to function as infrastructure that supports daily life. Just recently in Japan, the competition for interests between the taxi industry and the Japanese version of ride-sharing has settled, and it is uncertain when the introduction of unmanned taxis will happen...

In a world where geopolitical risks are rising, it does not seem beneficial from a national defense perspective to fall behind in the AI development race. Given that labor shortages have become a social issue, it is likely that many share the belief that society as a whole should actively consider the introduction of AI. Japan has plenty of room for improvement, for better or worse.

As AI has started to gain attention and has evolved significantly over the past year, it is likely to evolve even more rapidly next year. It's surprising to find oneself accepting a world depicted in comics during childhood as a reality. This time, I will introduce expected stocks centered around such AI.

Now, the first AI-related company is AR Advanced Technology <5578>. The company, which develops DX through AI utilization, is breaking out from the bottom price range of the chart (daily). Despite being a small-cap stock, its performance is steadily growing, so the Earnings Reports on January 10 will be watched closely.

Next, JDSC <4418>, which develops algorithm modules utilizing AI and provides licenses, has been gradually forming an upward trend since being introduced in this article on September 22. Although its past performance has been soft, the ordinary income announced on November 12 for the first quarter has rapidly expanded to 0.1 billion 23 million yen, showing that investor interest seems to be increasing.

GMO Media <6180>, which received a favorable reaction to its recent Share Buyback, shows signs of being proactive in shareholder returns, such as implementing a commemorative dividend. They also hold a patent for a generation technology that allows for the easy creation of quizzes for the high school subject 'Information 1' using generative AI, and are being monitored as a pioneer in educational DX support in Japan, where there is a shortage of teachers.

In September of this year, we introduced Genie <6562>, which operates the platform 'GenieeSSP' that maximizes internet advertising revenue. The company's performance is also good, and due to the expectation of an upside, it has been buying in and updating its yearly high price. This is the highest price level since March 2023.

Since it is also a year-end market after the Earnings Reports cycle, I would like to look at value stocks with performance expectations. Hagiwara Industry <7856>, which had a favorable Earnings Reports on December 10, moved with a gap after the Earnings Reports. They also implemented a dividend increase, and with PB below 1, I will strengthen monitoring to see if it can form an upward trend in the medium to long term from here.

Finally, we introduced Noritz Steel <7744> in this article back in May of this year. It announced its second upward revision on November 28. Although it was also revised upward alongside the Earnings Reports on November 8, this announcement is a reaffirmation of the upward revision. The PB is undervalued, and it has broken above the 25-day and 75-day moving averages, updating its yearly high. It is hoped that this will continue into next year.

Well, the story has become a bit long, but on my blog, I introduce "individual stocks and theme stocks that are currently strong". Please take a look if you have time. We look forward to welcoming you with our beloved cat, "Al".

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Author name: Yūgentō Gyokusuke

Blog name: The Cat Husband's Stocks are Limitless