Big Tech Earnings Announcement Imminent, Will AI Pessimism Disappear? What Will Stop the Decline in Semiconductor Stocks?

Summary

Han Sang-hee, Senior Research Fellow at Hanwha Investment & Securities, discusses the ongoing correction in memory semiconductor stocks and argues that the price adjustment is largely done, with SK hynix holding above key support. He frames the AI revolution as an early-cycle structural trend that will drive long-term chip demand, dismissing bubble fears. He also highlights Apple as an attractive de-rated consumer business and debunks the SK hynix ADR re-rating narrative. Ahead of big tech earnings, he expects positive results and capex guidance but is cautious about immediate market reaction given weak sentiment.

• Memory semiconductor stocks (SK hynix) are near a bottom after a sharp 40% correction, with price adjustment nearly complete.
• AI is still in the early adoption phase, comparable to the early internet era, making current skepticism a buying opportunity for long-term semiconductor exposure.
• Apple has transformed into a consumer staple with a compressed multiple, offering a solid diversification buy.
• Big Tech earnings, starting with Alphabet, are likely to be good and guide positively on AI capex, but fragile sentiment may delay any rebound.
• The SK hynix ADR listing will not cause a valuation re-rating; TSMC's premium stemmed from foundry dominance, not the ADR.
• US liquidity remains supportive as the Fed is unlikely to hike in July and has signaled no abrupt stop to asset purchases.
• Korean retail investors should consider US market cap weights and diversify beyond memory semiconductors into names like Apple.