South Korea's Semiconductor Target Price is Ultimately 'This Far' | Kim Rok-ho, Hana Securities Research Center Team Leader [Double Up]

Summary

Analyst Kim Rok-ho from Hana Securities discusses the ongoing strength in South Korean memory stocks, particularly SK hynix and Samsung Electronics. He argues that valuation concerns are mitigated by continuous upward earnings revisions driven by better-than-expected DRAM pricing and AI-related demand for LPDDR memory from NVIDIA's new CPU. He also comments on the evolving HBM competitive landscape and gives a cautious view on 2028 due to potential supply increases.

• KOSPI near 8,000 points, memory stocks leading gains with SK hynix and Samsung Electronics rising.
• Host asks about valuation burden; analyst says earnings estimates keep rising, reducing valuation pressure.
• DRAM price increases in Q2 and Q3 are exceeding expectations, supporting further estimate revisions.
• LPDDR demand from NVIDIA's upcoming Vera Rubin CPU (1.5TB per CPU) is tightening supply and boosting prices.
• HBM4 sees SK hynix's market share normalizing as Samsung and Micron catch up; not a loss of edge.
• 2028 outlook is cautious due to new fab openings that could increase supply and temporarily disrupt balance.
• Analyst remains positive on SK hynix and Samsung Electronics for the medium term, seeing further upside.
• NVIDIA earnings next week expected to confirm AI investment cycle momentum.