"Trump Election Beneficiary... AI Power Infrastructure, K-Defense, Shipbuilding"

With the election of former Republican President Donald Trump in the U.S. presidential election, attention is focused on industries expected to benefit. In the domestic capital market, defense industry, shipbuilding, and the U.S. market, as well as AI power infrastructure, are gaining attention.

Shinhan Asset Management announced on the 7th that in the domestic stock market the previous day, SOL U.S. AI Power Infrastructure (7.04%), SOL K-Defense (4.51%), and SOL Shipbuilding TOP3 Plus (2.88%) rose.

Kim Jeong-hyun, Head of the ETF Business Division at Shinhan Asset Management, said, "The domestic stock market moved in real time according to the sectors benefiting from each candidate as the U.S. presidential election vote count was reflected," adding, "Traditionally, uncertainty increases as the U.S. presidential election approaches."

He continued, "If the trend is similar to the past, it is necessary to focus on sectors expected to benefit from Trump's election along with the representative indices, as well as areas where bipartisan agreements have been reached regardless of the candidate."

Since the U.S. started a trade dispute with China in 2018, it has continued to check China. It is expected to focus on advanced industries including the semiconductor value chain and software.

While advocating for America First, it is characteristic that the U.S. emphasizes strengthening national defense to the extent of expanding defense spending. Companies related to supply chain construction in semiconductors, shipbuilding, and other sectors within the U.S. are expected to benefit.

One of the structural changes brought about by the new leading industry called artificial intelligence (AI) is the rise in electricity prices, which had been stagnant for about 20 years. With the rapid increase in data centers in the U.S., the power generation capacity to meet electricity demand is insufficient. Nuclear power, which has bipartisan agreement for building power infrastructure, along with existing large nuclear power plants, is attracting growing interest in new technologies such as Small Modular Reactors (SMR), making it a sector that requires continuous attention.

Kim said, "It is not easy to analyze various fields and stocks to respond to Trump-benefiting sectors with individual stocks," advising, "Because there is a risk of exposure to high volatility, using ETFs is efficient." He added, "Representative products such as SOL U.S. AI Power Infrastructure, SOL K-Defense, and SOL Shipbuilding TOP3 Plus will help respond effectively."