Name: Samsung Electronics Revaluation Begins? The Reason It Hasn't Risen Enough Yet | Kim Jang-yeol, Head of Research Center, Unistory Asset Management [Global Interview]
Uploaded: 2026-06-01T23:00:20+00:00
Duration: 1947 s

Speakers

Kim Jang-yeol — Reporter, The Bell

Summary

Kim Jang-yeol discusses multiple positive catalysts for Korean semiconductor stocks, including the AI PC initiative, strong server demand confirmed by Dell and HPE earnings, and Alphabet's capital raise signaling robust AI infrastructure spending. He argues Samsung Electronics has significant catch-up potential to SK Hynix and presents a KOSPI target of 11,200 based on semiconductor revaluation. Key risks remain macro uncertainty and geopolitical tensions.

NVIDIA's AI PC push is seen as a demand booster for memory, though near-term impact is secondary to server demand.
Dell and HPE earnings confirm strong AI server demand with exceptional margin expansion.
Alphabet's $80B capital raise and Berkshire's $10B investment indicate surging AI infrastructure needs.
Samsung Electronics has underperformed SK Hynix by a wide margin; the valuation gap is expected to narrow.
Samsung preferred shares are catching up to common shares, with increased foreign buying.
Kim projects KOSPI 11,200 if Samsung and Hynix re-rate to 10x and 9x forward earnings.
Macro risks (war, interest rates) remain but are considered noise if resolved.
Korean semiconductor export data shows strong momentum, supporting earnings upgrades.

Trade Ideas

Kim Jang-yeol Reporter, The Bell 2:19

AI PC boosts memory demand for Samsung/Hynix

Samsung Electronics has significantly underperformed SK Hynix since April 6 (78% gain vs 167% gain), and their P/E valuations have converged to around 7x. Historically Samsung traded at a premium, and the gap should narrow. If Samsung re-rates to a more normal 10x forward earnings, the stock could rise another 30% relative to Hynix staying flat. This catch-up trade is supported by recent HBM4 sample wins and strong server demand.

Kim Jang-yeol Reporter, The Bell 2:19

AI PC boosts memory demand for Samsung/Hynix

The AI PC initiative by NVIDIA and Microsoft introduces a new demand driver for DRAM, particularly benefiting Korean memory makers Samsung Electronics and SK Hynix. Although the practical performance and ecosystem are not fully ready, the push from NVIDIA to revitalize the stagnant PC market by increasing memory content will boost demand for high-capacity LPDDR, which these companies supply.

Kim Jang-yeol Reporter, The Bell 5:12

AI server demand confirmed by Dell/HPE earnings

The strong earnings from Dell and HPE confirm that AI server demand is the dominant driver of semiconductor growth. Both companies reported revenue beats but more importantly massive margin expansion (50-60% above expectations) driven by their server businesses, indicating that demand for AI infrastructure is accelerating and will continue to benefit the entire supply chain.

Kim Jang-yeol Reporter, The Bell 18:06

Samsung preferred shares discount narrowing

Samsung Electronics preferred shares (005935.KS) were trading at an unusually wide discount to common shares (65% of common price vs historical 80-85%). After recent rise, the discount narrowed, and foreign ownership in the preferred shares increased, suggesting smart money is buying. The preferred shares offer higher dividend yield and should continue to converge toward common shares.

Kim Jang-yeol Reporter, The Bell 27:54

KOSPI could reach 11,200 on semis rally

Applying a 10x P/E multiple to Samsung Electronics and 9x to SK Hynix on consensus 2025 earnings (assuming other KOSPI components stay flat), the KOSPI index could reach 11,200. This is contingent on macro conditions (war resolution, MSCI upgrade) but the underlying earnings momentum from the semiconductor sector supports this target.

Samsung Electronics Revaluation Begins? The Reason It Hasn't Risen Enough Yet | Kim Jang-yeol, Head of Research Center, Unistory Asset Management [Global Interview]

Summary

Trade Ideas

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