This Year's Top Growth Theme Returns: NFT and Metaverse... Autonomous Driving Overcomes 'Neglect' Next Year

Autonomous vehicles from various universities participating in the '2021 Autonomous Driving Challenge' held in Sangam-dong, Mapo-gu, Seoul are running on the road. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Lee Seon-ae] Amid the repeated rotation of growth themes this year, non-fungible tokens (NFTs) and the metaverse have recorded high returns. Autonomous driving, which was thoroughly neglected this year, is expected to attract attention as a growth theme next year as the global competition for autonomous vehicle development intensifies.

According to financial information firms FnGuide and Shinhan Investment Corp. on the 30th, an analysis of cumulative returns by domestic growth themes over the past six months showed that NFTs topped the list with a 40% return. The metaverse followed closely with nearly 30%, ranking second. Secondary batteries, system semiconductors, and future cars also achieved positive returns. On the other hand, 5G tech, e-commerce, renewable energy, and the hydrogen economy, which were popular in the first half of the year, entered negative returns in the second half.

Choi Yoo-jun, senior researcher at Shinhan Investment Corp., explained, "In the first half, the domestic and international 'Green New Deal' policy expectations led the growth themes in renewable energy, secondary batteries, and future cars. However, as concerns over supply chain disruptions persisted, from September onwards, themes less correlated with the macro environment, such as the metaverse and NFTs, emerged as leading stocks."

Recently, as concerns over semiconductor supply disruptions for automobiles have eased, the autonomous driving theme is stirring again, raising expectations as a leading theme in January.

The direction of future cars, including the shift away from internal combustion engines and electrification, has already become a trend. The ultimate goal of electrification is the commercialization of autonomous driving. Market interest is naturally expected to shift toward autonomous driving, with forecasts suggesting it will be among the high-return themes next year.

Increased domestic investment in autonomous driving technology and the progress of commercialization research are also having a positive impact. Korea aims to commercialize Level 3 autonomous driving next year, followed by Level 4 (high automation) commercialization by 2027. Additionally, policies supporting autonomous driving are increasing. The Ministry of Trade, Industry and Energy plans to boost the future car budget by 30% from this year to 467.4 billion KRW next year to support technology development. Furthermore, Seoul City announced the 'Autonomous Driving Vision 2030,' planning to establish autonomous driving infrastructure for taxis, buses, and more throughout Seoul by 2026.

Researcher Choi emphasized, "Recently, capital inflows have been confirmed into DRIV, a U.S.-listed exchange-traded fund (ETF) that includes autonomous driving and electric vehicle companies," adding, "In the domestic stock market, with improved supply and demand centered on large-cap stocks, interest may expand to the relatively neglected automobile sector."

Autonomous driving-related companies in the software sector include Hyundai AutoEver and Obigo. In the sensor sector, Samsung Electronics, Samsung Electro-Mechanics, LG Innotek, MCNEX, Optrontec, and Nextchip are attracting attention. In the controller area, Samsung Electronics, Samhwa Capacitor, Amotech, Telechips, and LG Electronics are notable. In the actuator sector, Mando and Hyundai Mobis are considered related stocks.

This content was produced with the assistance of AI translation services.