KS KS Loading... : Bullish and Bearish Analyst Opinions

Doosan Fuel Cell signed a large fuel cell supply contract to US AI data centers starting in the second half of 2024 through first half of 2028. Kwon argues that even though fuel cells are expensive to operate, the deal shows US power bottlenecks are so severe that data center operators are pulling forward expensive on-site generation; data center construction takes about 18 months while transmission and distribution can take more than 10 years, and fuel cell waste heat can be used for data center cooling.

Yoo stays positive on SK Hynix and Samsung Electronics because semiconductor news remains good: Dell's AI-server backlog nearly doubled, next week's AI Infrastructure Summit is coming, Broadcom can confirm data-center demand, and August semiconductor exports hit a record despite stronger won. He expects semiconductor stocks to resume normal positive response.

Korea's August exports hit an all-time high, with semiconductor exports up 209% year over year and staying above $40 billion for three consecutive months. Despite weak price action, semiconductors are 75% of KOSPI operating profit and 53% of its market cap, so Park argues investors should maintain semiconductor exposure, especially Samsung Electronics and SK hynix, and watch for Q3 earnings confirmation after buybacks wind down.

Lee says Korean secondary battery stocks should be viewed as an ESS story rather than an EV story because EV demand remains weak but valuations are not burdensome. US restrictions on Chinese power equipment could become a full ESS ban and benefit Korean suppliers with US factories. He sees Samsung SDI as the sector leader that must hold, with about 15% further upside, and POSCO Future M as having about 20% upside toward 250,000 won, so dips can be bought.

The consensus that memory semiconductor share prices should be driven mainly by shareholder return is wrong; semiconductor valuation is really driven by operating margin and monopoly power. Samsung Electronics at PBR below 1.5 is entering an opportunity zone and should be bought first, while SK hynix becomes more attractive when its PBR moves into the middle of its historical band.

Hyundai Motor Group's investor day disappointed because management seemed to have no immediate will to support the stock price; robot and humanoid Q&A was mostly reserved and vague. Heavy short selling hit Kia and related names, but much disappointment is now reflected and prices are unlikely to fall much from here. If a rebound comes, reducing exposure makes sense, while a new catalyst could trigger short covering.

Power-equipment leader Hyosung Heavy Industries is not cheap versus U.S. peers, but it has a U.S. factory, expected order prospects, representative status and supply flows chasing it after China-exclusion and emergency power-system news. In a narrative-driven market, that is enough to keep it moving, though valuation should be understood as flow-driven.

Kwon highlights Bloomberg reporting that NVIDIA will raise AI server prices by about 15% because memory prices have risen so much. In his view this shows Samsung Electronics, SK hynix, and Micron have unusually strong bargaining power, and Apple and Qualcomm have already cited memory price increases for their own product price hikes. He adds that Korea is pulling forward memory fab construction from 2045 to 2033, calling this a 'decided future,' implying memory makers are structurally positioned to benefit.

Samsung SDS is leading the consortium for the 2.4 trillion won national AI computing center in Haenam and is also building its own 200MW data center. It is directly exposed to the shift of AI data centers into renewable-rich, non-metropolitan sites with available land and power.

Korean equities and the Korean won are supported by shareholder return plans at Samsung Electronics and SK hynix, with Samsung planning up to $79 billion in buybacks/dividends and SK hynix announcing buybacks; investors expect exporters to repatriate dollar earnings, making the won the best-performing Asian currency today.

Memory companies have locked in three-year deals and pricing is expected to be even tighter in 2027. The only bear case is mass customer bankruptcy, making them a strong hold.

Samsung Electronics announced a 150 trillion won shareholder return plan, but the market had expected up to 200 trillion won; excluding the existing dividend, the extra buyback/cancellation is about 120 trillion won, not a major surprise. The stock already rose about 10% yesterday ahead of the news, and past large buyback/cancellation programs in Korea did not produce dramatic re-ratings. Chasing Samsung solely on the shareholder return narrative could leave new buyers stuck.

Samsung Electronics has fallen enough to look like a value and high-dividend stock, supported by buybacks and cancellations, while SK Hynix ADR is showing positive after-market action. Song expects hedge fund churning to give way to longer-term investors, making the recent semiconductor decline potentially positive.

SK hynix has not yet pushed its 5-day moving average above the 20-day moving average, so buying before confirmation is premature; if it falls, it can drop further. Samsung Electronics already trapped those who bought on confirmation, so the current lesson is to wait for confirmed technical strength before buying. A hold of the 5-day without breaking the 20-day would support another rebound.

Choi argues the semiconductor investment thesis has weakened for H2. H1 was driven by memory shortage, memory companies' rising AI status, and valuation re-rating; now valuation re-rating is gone, memory shortage remains but memory prices/cost pressure and potential competitors are negatives, so he recommends lowering semiconductor exposure to market weight rather than concentrating.

Memory remains a strong AI-infrastructure trade despite the Leopold blowup: SK hynix just reported record quarterly earnings but fell about 20% on fears that GPU/memory spending had peaked, while major investors doubled down at the lows. Ejaaz argues memory is physically supply-constrained, next year's memory supply is completely sold out, and demand extends into 2028, supporting Micron and SK hynix.

SK Group Chairman Chey Tae-won said next year the global memory market will face its worst supply shortage, causing chipflation where chip prices lift finished product prices. He argued the AI era is different because one person uses multiple AI agents, so per-capita memory demand can surge. Samsung Electronics and SK hynix are also reducing cyclicality via long-term agreements and JVs, supporting memory names structurally.

LG Electronics has many capable group components such as batteries, sensors, appliances, chillers, Uplus data centers and actuators, but has historically failed to integrate them. The Nvidia strategic MOU gives LG a platform to combine these capabilities in robotics, AI factories and future mobility. Plans include an Isaac-based humanoid robot by next quarter, a Tennessee washer-line robot pilot, and an 80MW Cheonan AI factory using LG cooling, making this a meaningful Nvidia-linked synergy story.

Samsung Electronics and SK hynix are core AI beneficiaries because U.S. hyperscalers are making massive AI investments amid U.S.-China competition. Their operating profit surged this year. After sharp price drops to cheap valuations in July, foreign selling slowed, and the speaker says semiconductor leaders will continue to rise, though he suggests trimming some profitable positions.

Big Tech's urgent demand for floating data centers is a new high-value opportunity for Korean shipbuilders. Land-based US data center construction is increasingly blocked by cancellations and local boycotts, so buyers want data-center-only floating platforms built quickly. Korean yards can supply these using existing docks, hull-side technology, and offshore plant experience. Even if only about 1GW of annual US data-center construction shifts to floating, the impact could resemble the emergence of LNG carriers, and orders could deliver several times the effect of ten ordinary tankers with better margins.

Yoo Chang-hee sees SK hynix continuing higher because the ordinary shares have recovered the big July 13 drop, the ADR has already returned to its listing-day price, and the ADR-ordinary gap should narrow from roughly 30% toward 20%. He thinks Hynix can move quickly to 180,000 won and later to around 190,000 won, but sees 230,000-240,000 as overpaced this year. He is trimming some leverage at 170,000 won only to reduce risk, not because the upside is over.

AI memory demand was attacked because hyperscaler cash levels looked tight, but hyperscaler operating cash flow is still growing around 40% and long-term AI capex fear is overblown. For Korean upside beyond 7,500, the key condition is removal of AI capex doubt, which supports Samsung Electronics and SK hynix memory demand.

Foreign investors' KOSPI options expiry positioning for the current week is slightly bullish for the index. To lift the index, they are likely to push up heavyweights Samsung Electronics and SK Hynix. If the US market closes flat tonight, there is a high probability that Samsung Electronics and SK Hynix will show strength tomorrow and through the remainder of the week, presenting a tactical short-term buying opportunity.

Memory and semiconductor stocks have lost momentum and look uninspiring. The speculative fervor that drove them has faded, volatility is muted, and the charts are weak. The memory trade is likely quiet or declining for the near term, and capital may rotate elsewhere (possibly crypto).

A KOSPI 200 equal-weight ETF reduces the extreme concentration in Samsung Electronics and SK Hynix that dominates the cap-weighted index. It has fallen less during the recent correction and is now participating in a rotation rally, offering a smoother, more diversified ride for retail investors who struggle with stock-picking.

Foreign investors are heavily selling Samsung Electronics and SK hynix to depress KOSPI while holding massive short futures positions, creating artificial suppression. Once they sufficiently unwind futures shorts, they will stop selling and the stocks can rebound. The stocks have held support despite the selling, and fundamentals remain strong (TSMC good earnings, NVIDIA doing well, DRAM speculation overblown). A rebound could start as early as this week.

Market chatter suggests SK Hynix could announce a massive shareholder return framework of up to 100 trillion won, split between dividends and buybacks, which would significantly improve the sustainability and attractiveness of the stock after a period of heavy capex and retail deleveraging.

The global ESS market is booming (Q2 shipments +66% YoY), and U.S. policy is increasingly hostile to Chinese batteries, forcing North American buyers toward Korean suppliers like LG Energy Solution and Samsung SDI. The setup mirrors the early stage of the Korean shipbuilding turnaround, with volume growth and eventually pricing power driving a multi-year recovery.

The current market correction is not a risk to be managed but an aggressive buying opportunity. The KOSPI is forming a W-shaped bottom with a higher right hip, and the early September dip, around the FOMC meeting and Chuseok, will be a temporary supply headwind. Investors should focus on identifying the strongest sectors during this correction as they will lead the next leg up, and attack the market aggressively during this window.

The recent sharp sell-off in Korean semiconductor stocks is a deliberate 'shaking' by foreign institutional investors to fleece retail (양털 깎기). Foreign selling on the way up was driven by mechanical risk-rule protocols, not fundamental negativity, and they will re-enter once prices have fallen enough to reset their allocation rules. This will trigger a strong rebound, especially as Q4 interest rates are expected to decline, creating a favorable environment for tech. SK Hynix will return to 300,000 KRW.