Micron's Amazing Earnings Announcement... How Much More Will Expectations for Samsung Electronics and SK hynix Grow? | Kim Jang-yeol, Head of Research Center, Unistory Asset Management

Summary

Following Micron's strong earnings beat, Kim Jang-yeol, Head of Research at Unistory Asset Management, explains why dip-buying in memory stocks remains a valid strategy. He translates Micron's results into upside for SK hynix and Samsung Electronics, citing closing valuation discounts, upcoming ADR listing and earnings catalysts, while noting the AI structural growth debate will persist.

• Micron beat Q3 earnings and guidance by ~20%, with DRAM prices up over 60% and NAND up over 80%, driving after-hours gains.
• CEO Kim Jang-yeol sees Micron's results as proof of strong AI-driven memory demand, and recommends buying dips.
• Strategic customer agreements (SCA) with prepayments now cover 20-33% of Micron's supply, aiming for 50%, adding revenue visibility.
• Micron's forward P/E is about 7-8x on next-twelve-month EPS expectations, with analyst target upgrades toward $1,500-$1,700.
• SK hynix should benefit directly, trading at a 5-10% discount to Micron, with the July 10 ADR listing providing near-term momentum.
• Samsung Electronics trades at a deeper discount (10-20% vs. SK hynix) and could stage a catch-up if its July 7 preliminary Q2 earnings surprise to the upside.
• Kim advises against panic selling and suggests accumulating on dips; the structural growth vs. cycle debate will continue but fundamentals support the uptrend.