Rally Not Over Yet? Semiconductors Are Real From July | Myeong Min-jun, Park Ga-young, Yoo Young-hwa

Summary

Yoo Young-hwa from KB Securities sees the memory semiconductor rally continuing, recommending SK hynix and Samsung Electronics as cheap plays with strong catalysts. He also points to CPU stocks like Intel, Arm, and AMD as the next AI beneficiaries in the agentic AI phase. Meanwhile, he warns against buying KOSDAQ leveraged ETFs due to a persistent downtrend. Despite global liquidity concerns, he believes the AI cycle will sustain for years.

• Yoo Young-hwa, Deputy General Manager at KB Securities, discusses the strong memory semiconductor rally led by SK hynix and Samsung Electronics.
• He argues that the memory uptrend is real and not over, driven by tight supply, long-term agreements, and AI demand.
• Key catalysts include the SK hynix ADR listing, Samsung’s preliminary earnings, and expected HBM price increases.
• He recommends buying SK hynix and Samsung Electronics now due to cheap valuations relative to KOSPI and upcoming catalysts.
• He highlights CPU stocks (Intel, Arm, AMD) as the next area to benefit from agentic AI, with a 37% CAGR through 2030.
• He advises avoiding KOSDAQ leveraged ETFs because the index is in a downtrend and averaging down could increase losses.
• Broader market faces liquidity constraints from central bank rate hikes and large IPOs, but memory stocks remain resilient.
• He expects the AI cycle to last around 10 years, with sovereign AI investments adding further demand.