Is there another reason why earnings estimates keep rising? | Kim Rok-ho, Hana Securities Research Center Team Leader [Double Up]

Summary

Kim Rok-ho, a memory analyst at Hana Securities, joins Double Up to explain why Samsung Electronics and SK Hynix earnings estimates keep rising. He details a severe LPDDR DRAM shortage driven by Nvidia's AI server demand and argues the recent semiconductor sell-off is a buying opportunity. He expects continuous estimate upgrades through October and recommends buying the two Korean memory leaders on any dips.

• Kim views the recent semiconductor correction as similar to the March pullback, which turned into a strong opportunity.
• LPDDR prices are surging 80-90% quarter-on-quarter because of extreme tightness.
• Nvidia's upcoming Vera-Rubin platform alone could consume up to 50% of total LPDDR supply next year.
• Samsung's full-year operating profit could reach 100 trillion won, well above current consensus below 90 trillion.
• Continuous earnings estimate upgrades are expected to drive target prices higher.
• He recommends buying Samsung Electronics and SK Hynix on market pullbacks, seeing safety at least until the Q3 provisional results in October.
• Existing worries such as Chinese competition are already known and pose limited incremental risk.