Volatile Stock Prices, You Must Understand This Volatility to See the Real Semiconductors | Myung Min-jun, Park Ga-young, Kim Jang-yeol

Summary

Kim Jang-yeol explains that extreme volatility in Korean stocks is driven by massive 2x leveraged ETFs on Samsung and SK Hynix, which turns the market into a leveraged AI proxy, while foreign investors rotate out and the National Pension likely sells on strength. He argues the AI memory fundamentals remain exceptional, so sharp dips in Samsung and Hynix are buying opportunities. He also highlights Korean securities stocks as a near-term rebound play as rate hike fears ease and flags Micron Technology for a potential catch-up rally if its discount to Hynix narrows.

• Korean 2x leveraged ETFs on Samsung and SK Hynix have reached 130–200% of KOSPI daily value, amplifying volatility and scaring foreign investors.
• Foreign flows have rotated from Korea to Japan and China, and the National Pension Service is a latent seller at higher market levels.
• Despite the turmoil, AI memory fundamentals stay robust with huge earnings growth, so buying Samsung and SK Hynix on panic drops is recommended.
• Fading US rate hike fears due to weak employment data create a rebound opportunity in beaten-down Korean securities stocks.
• Micron Technology is trading at a discount to SK Hynix, and a potential narrowing around earnings could deliver a 15–20% rally.
• Meta's data-center leasing comments and Apple's chipflation complaints are seen as short-term noise that will be resolved at earnings.
• Korean semiconductor equipment names are viewed as overextended and likely to correct, making them less attractive near term.