Samsung Electronics, SK Hynix Finally 'Rebound'...Why Did They Fall? Will the Uptrend Continue? | Jung Woo-chang, Yeo Do-eun, Heo Jae-mu [Morning N Investment]

Summary

NH Investment & Securities manager Jung Woo-chang argues that the sharp decline in Samsung Electronics and SK Hynix is a supply-driven shakeout, not a fundamental breakdown. He sees AI memory demand staying strong, valuations at historically cheap levels, and Korean corporate earnings reaching unprecedented highs. He advises against selling, expects a rebound after big tech earnings, and warns that exiting now risks missing a powerful recovery rally.

• Samsung Electronics and SK Hynix fell due to overcrowded positioning, passive fund outflows, and leverage unwinding, not weakening fundamentals.
• AI-driven memory demand is price-inelastic; HBM pricing seen rising 50-100% next year.
• Samsung and SK Hynix trade at extremely low P/E multiples (single digits) compared to past bubble-era valuations, so earnings growth will eventually drive price recovery.
• KOSPI net profit expected to break through 1,000 trillion won next year, a historic high.
• Alphabet is very likely to raise AI investment capex, providing a positive catalyst for memory demand.
• Tesla's physical AI comments may influence Hyundai Motor and Korean robotics stocks, but only if Tesla delivers concrete progress.
• The speaker personally uses AI tools, reinforcing his conviction that AI adoption is real and productivity-enhancing.
• Investors who sell now risk missing a significant rebound when supply pressures ease and earnings confirm the bull case.