SK Hynix Selloff Is Not a Huge Problem, Kunst Says

Summary

Sarah Kunst of Cleo Capital discusses the SK Hynix sell-off, arguing it is profit-taking after a massive rally and not a structural problem. She highlights Taiwan Semiconductor as a favorite name and sees value in Korean semiconductor stocks relative to crowded AI plays. The conversation also covers memory chip shortages, AI demand sustainability, and diverging attitudes between equity and debt markets.

• SK Hynix sell-off attributed to profit-taking after 500% annual gain, not a fundamental issue.
• New US-listed access attracts buyers and supports SK Hynix demand.
• Taiwan Semiconductor named as a top pick within AI/semis.
• Korean semiconductor companies trade at a discount versus overbought Nvidia and TSMC.
• Memory chip shortages may persist beyond 2030, giving pricing power to producers.
• AI demand could be sustained by cash-rich firms like Meta and Google, despite potential price hikes by AI labs.
• Debt buyers are more cautious than equity buyers in funding AI-related companies.