Lee Geon-gyu

SK Hynix is significantly undervalued versus Micron and TSMC on earnings, and the planned ADR listing on Nasdaq will unlock passive flows from Nasdaq-100 and Philadelphia semiconductor ETFs, while the local share price will be pressured upward, with additional momentum from the company's shareholder return policy.

AI-driven demand for HBM and server DRAM is creating a memory supply shortage that will persist and worsen until at least 2028. Cloud hyperscaler profits from AI workloads (40‑80% revenue growth, 35‑40% margins) confirm the capex cycle, and big tech capex guidance has been raised. Meanwhile, the China competition threat (CXMT’s DDR5, HBM progress, DUV lithography) is heavily overblown and will not challenge high‑end memory until after 2030. Current price dips are noise, and although short‑term volatility is inevitable, every pullback is a buying opportunity for long‑term investors.

KOSPI remains on track for 12,000 by the first half of next year because Korea's operating profit growth is among the highest globally, yet the market trades at only 7.5x P/E, leaving significant room to re-rate to historical averages of 10-12x and reaching a market cap of 1 quadrillion won.

Semiconductors, particularly memory, offer the strongest momentum, the cheapest valuation, and the highest earnings growth in the Korean market, with no negative change in oil prices or big-tech capex, making the sector the top pick despite recent market noise.