Samsung Electronics and SK hynix's All-Time Fierce Semiconductor War / Exit Semiconductor Stocks When This Signal Appears; the Real Stock Decline Starts Then | Executive Director Heo Jae-hwan

Summary

Heo Jae-hwan of Eugene Investment & Securities discusses the Fed's rate stance, Samsung Electronics and SK hynix's HBM4 competition, and the outlook for semiconductor stocks. He sees Korean equities supported by a Fed on hold, prefers Samsung for 2026 earnings but SK hynix for HBM4 execution, and remains constructive on semiconductors while flagging a DRAM price-growth peak as the key exit signal. He also highlights low-PBR Korean stocks as a multi-year opportunity and says KOSPI 5,000 is not automatically a new era, with a possible peak signaled by 6,000-point talk.

• Fed rate cuts are expected to pause, which Heo views as historically favorable for Korean equities.
• SK hynix reported strong memory demand and confidence on supply shortages; HBM4 execution remains its advantage.
• Samsung Electronics is seen as having caught up in HBM4 and may benefit from faster-rising DRAM prices in overall 2026 earnings.
• Semiconductor suppliers have gained pricing power over AI data-center customers, supporting buy-on-dips until at least mid-year.
• The first semiconductor sell signal would be a peak in DRAM price growth and a stall in P/E compression.
• Low-PBR Korean stocks may be a two-to-three-year opportunity as policy reforms cushion drawdowns.
• Heo says KOSPI 5,000 is not necessarily a new era; 6,000-point market talk could mark peak sentiment.