Samsung Electronics and SK Hynix Lead, LG and Doosan Push... AI-Driven Surge Market, No Need to Fear_26.06.01. | Lee Hyeok-jin, Yeo Do-eun, Heo Jae-mu [Morning N Investment]

Summary

Lee Hyeok-jin discusses the AI-driven surge in Korean equities, emphasizing that the semiconductor cycle led by Samsung Electronics and SK hynix remains intact. He highlights supply-chain beneficiaries like LG Innotek and Samsung Electro-Mechanics due to FCBGA substrate shortages. He advises focusing on earnings-backed names and warns against chasing speculative biotech or overextended LG Electronics.

• AI capex cycle expected to last through 2026-2027, supporting Samsung and SK hynix.
• SI software stocks seen as victims of AI, not beneficiaries.
• FCBGA substrate demand outstrips supply, benefiting LG Innotek and Samsung Electro-Mechanics.
• Biotech may rally later but only if earnings are real; Hanmi Pharm's tech export is a positive sign.
• LG Electronics' surge is largely ETF-driven, not fundamental.
• KOSPI valuation is not a bubble because EPS growth has outperformed index gains.
• Foreign selling is partly rotating to Japanese semiconductors, not a systemic exit.
• Holding companies may see dividend windfalls from semiconductor profits.