The following is a comment written by a FISCO social reporter for individual investors, Mr. Yuusuke Yuge (Blog: Profitable Stock Information" Nekodanna's Stock Never Ceilings "). At FISCO, we strive to work with individuals who are actively disseminating information to deliver a diverse range of information to investors.

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* Written on September 16, 2024 at 12:00.

It seems that AI and data center-related sectors are being sought after again. Considering the uncertain market outlook and thinking about future prospects and realistic future, interest in AI-related fields is still high. After the widespread adoption of generative AI, it is interesting to see which AI service will dominate next.

I am Yugi Yuge, who writes a stock and cat blog called 'Profitable Stock Information "Nekodanna's Stock Never Ceilings"'.

After OpenAI announced ChatGPT, the high-tech industry is striving to dominate the AI field. Naturally, it is not a situation where ChatGPT is the sole dominant force, as new AI services are being announced by various companies within three or six months. It is also a situation where it is unknown which company will stand out and take control, resembling a situation of many strong competitors.

Sakana AI, a Japanese AI venture established in July 2023, became the topic of conversation when it received investment from NVIDIA. In the future, we may see more companies from Japan that can compete on a global scale. As individual investors, it is important to anticipate the future and imagine how AI will transform society, and develop the ability to predict stocks that will expand their performance like a game of associations.

As AI becomes more widespread, the performance of AI-specific data centers will also improve. If the proliferation of data centers leads to a shortage of electricity, it is likely that there will be progress in the development of materials that contribute to energy efficiency. There is also a possibility of technological advancements in server cooling, and if discussions about restarting nuclear power plants or nuclear fusion become more realistic, there will be expectations for government investments.

In fact, our lives have already started to change. Even now, we often see commercials for AI-based real estate investment and stock investment, but in the future, there may be AI that can accurately predict company performance and charts. As the evolution of AI becomes more prominent, it is also important to keep an eye on the evolution of the data centers that support these services. This time, we have picked up some stocks in that area.

Zain Electronics, a fab-less semiconductor manufacturer, announced that it has achieved a next-generation communication standard PCI Express 6.0-compatible ultra-high-speed PAM4 64Gbps optical semiconductor chipset for data servers on September 10. This enables significant energy savings and low latency. The chart (daily) is worth monitoring to see if a trend can be formed.

System Support, an independent system development company, is expanding its data center services as outsourcing business. It seems that the stock's sales are expanding and the average customer price is also rising. If it surpasses its previous high of 2,212 yen set in March of this year, there may be a possibility of further upward movement. It is worth watching.

We are also checking out Hokuriku Electrical Construction as there is an increase in demand for new data centers. The company, which is part of Hokuriku Electric Power Group, is expected to achieve its highest sales ever for the fiscal year ending in March 2025. With a low PBR, we are currently monitoring the chart (daily).

Triple Eyes, which has speculations in AI data center-related businesses, was well received when its group company ZeroField announced the provision of the container-type data center "DINO Rex." We want to closely monitor whether new data centers will be developed by the company, which is focused on energy efficiency in data centers.

Saijinia, which offers AI-powered digital marketing solutions, is also being sought after as an AI-related company. Recently, its EC product search and site search engine "ZETA SEARCH" was introduced to the comprehensive shopping mall "JAL Mall" operated by Japan Airlines, which was considered a positive factor.

Lastly, JDSC, which develops algorithm modules using AI, has been showing an upward trend in its chart (daily) since the good financial results on August 13. Its share buyback has also been well received, and if the performance remains stable, it may form an upward trend.

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: Yuugentei Tamaki Blog Name: The Cat Master's Stocks Know No Limits

Blog Name: The Cat Master's Stocks Know No Limits