Memory Prices Won't Easily Go Down: Why? | Lee Geon-gyu, Renaissance Asset Management CEO

Summary

Renaissance Asset Management CEO Lee Geon-gyu lays out his September and October Korean market strategy, arguing that memory prices will remain strong because AI-driven DRAM demand and HBM conversion will create legacy DRAM shortages. He favors semiconductors, IT hardware/MLCC, machinery/power equipment, and construction, while treating defense, cosmetics, and shipbuilding as relatively less attractive or neutral. He also discusses oil near a top, AI agent data-center demand, SK Hynix's possible Japan fab, and why rate hikes are not automatically bearish.

• September is not automatically bearish, and he would hold through volatility into a better October.
• Top sector picks are semiconductors, IT hardware/MLCC, machinery/power equipment, and construction.
• Defense is less stable, cosmetics are late, and shipbuilding is neutral.
• HBM contract prices are expected to double next year and are a September catalyst.
• AI consumes 70-80% of DRAM capacity, and HBM conversion may cause legacy DRAM shortages.
• Agent AI traffic is surpassing ChatGPT usage, driving data-center demand.
• WTI crude oil is seen near a short-term top around $90.
• SK Hynix's possible Japan fab is not a major negative.