The US S&P 500 and Nasdaq have hit all-time highs. The S&P 500 has risen 16% from its bottom this year, while the Nasdaq has climbed 24%.
Expectations for a peace treaty are rising following a report by the media outlet Axios stating that the US and Iran are preparing a document to reach an agreement on ending the war.
With bond prices rising and oil prices falling, the dollar is showing weakness, and gold prices have also risen by 2.4%. The current situation is a near-perfect "Goldilocks" scenario.
With ADP hiring figures coming in positive, there is talk that the market is not yet in a stagnant phase.
As AMD posted strong earnings and rose 18% driven by surging demand for data centers, overall semiconductor stock prices have risen. Investments in Anthropic have increased rapidly, reaching $1.3 trillion.
The Fear and Greed index has climbed back up to 65. The market appears to be rising again after exiting a period of overheating. NVIDIA surged, rising 5.94%.
I am looking at Lumentum and Arista Network as optical network companies related to AI infrastructure. Since optical communication is used to connect servers in AI data centers, Lumentum's optical communication component is required.
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Lumentum's revenue increased by 90.1% in one year. Profits quadrupled in one year to $2.37. Considering it was $0.57 a year ago, this represents significant growth. However, Lumentum's stock price fell 3% in after-hours trading. This is due to high expectations regarding revenue.
Lumentum's stock price has risen tenfold in the past year. Nevertheless, Lumentum's future is bright. In March, NVIDIA signed a multi-year investment agreement worth 20 trillion won and agreed to support the expansion of Lumentum's factories in the United States.
Arista Networks is a company that manufactures routers and switches that connect Ethernet network equipment between servers in data centers.
As demand for network equipment in AI data centers increases, the company's operating profit margin has reached 50%. While this is a very high profit margin for a network equipment manufacturer, market expectations were even higher. Since the earnings announcement, the stock price has fallen by 16%.
When investing in AI infrastructure-related companies, utilizing the AI Optical Network ETF known as THNQ offers high stability due to its excellent diversification. Lumentum holds a 2.5% stake in THNQ.
I hope you grow stable pension assets by consistently accumulating AI infrastructure-related ETFs through monthly installments.