AI semiconductors, this is just the beginning… 'It will last 7 more years' | Kim Jang-yeol, Unistory Asset Management, Lee Se-cheol, Citigroup Research [Chip Chat]

AI 반도체, 이제 시작이다… “7년 더 간다” ㅣ김장열 유니스토리자산운용 본부장, 이세철 씨티그룹 리서치부문 전무 [칩썰]
Watch on YouTube ↗  |  May 08, 2026 at 22:00  |  1:00:49  |  3PRO TV (삼프로TV)
Speakers

Summary

In this interview, Lee Se-cheol of Citigroup Research argues that the AI semiconductor cycle is only in its early innings and has 7+ years of growth ahead. He highlights that Samsung Electronics and SK Hynix are undervalued given their surging profits, and sets a KOSPI target of 8,500. The discussion also covers long-term agreements, custom chips, and key risks.

  • Lee Se-cheol says AI semiconductor cycle is at 2nd inning with 7+ years remaining.
  • Samsung and SK Hynix are undervalued relative to their earnings growth from AI memory demand.
  • KOSPI year-end target of 8,500 is supported by strong semiconductor earnings.
  • Long-term agreements are making memory industry less cyclical and more stable.
  • Risks include AI player consolidation and potential supply discipline breakdown.
  • Future waves like physical AI and edge AI will further boost demand.
Trade Ideas
Lee Se-cheol Executive Director, Citigroup Research 6:00
AI semiconductor cycle has 7+ years left.
The AI semiconductor cycle is still in its early stages, only at the 2nd inning of a 9-inning game, with at least 7 more years of growth driven by real-world AI adoption, enterprise usage, and persistent supply-demand mismatches. Inference demand is expanding beyond training, and future waves like physical AI and edge AI will further boost needs.
SMH HIGH
Lee Se-cheol Executive Director, Citigroup Research 48:43
Memory stocks undervalued vs earnings growth.
Samsung Electronics and SK Hynix are deeply undervalued relative to their surging earnings from AI memory demand (operating profits up 5-6x YoY), trading at only 5-6x P/E while other AI-related components trade at 30-40x. The shift to custom memory, binding long-term agreements, and Samsung's integrated foundry advantage support a structural rerating. The speaker recommends buy-and-hold for 3-4 years.
005930.KS 000660.KS HIGH
Lee Se-cheol Executive Director, Citigroup Research 49:58
KOSPI target 8,500 with low valuation.
The KOSPI index has a year-end target of 8,500 (PBR 1.1x), supported by massive earnings growth from semiconductor companies (which account for ~60% of KOSPI200 profits) and improvements in other export sectors like defense and autos. Current valuation is low compared to global peers.
EWY HIGH
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This 3PRO TV (삼프로TV) video, published May 08, 2026, features Lee Se-cheol discussing SMH, 005930.KS, 000660.KS, EWY. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Lee Se-cheol  · Tickers: SMH, 005930.KS, 000660.KS, EWY