Will there be a change in leading stocks in the second half? Chiplation shock… Are memory stocks okay? | Dr. Kim Hyojin, Shinhan Securities

Summary

Dr. Kim Hyojin discusses the 'chiplation' (chip price inflation) theme and its investment implications. She argues that chipflation alone is unlikely to cause broad inflation, especially with oil prices falling. While consumer device demand may face headwinds, AI data center memory demand remains very strong and price inelastic, as shown by Micron's take-or-pay contract. She views Korean memory leaders Samsung Electronics and SK hynix favorably.

• Chipflation fears are overblown; chip price increases are unlikely to cause broad CPI inflation.
• Oil prices have dropped to $70, easing the risk of dual commodity inflation.
• Memory chips represent 40-50% of data center server costs, making price sensitivity higher.
• Micron's take-or-pay contract signals inelastic data center demand and strong memory pricing power.
• Smartphone and PC demand may slow from higher chip costs, but this is not yet seen in data.
• AI data center capex remains robust, supporting continued high memory chip demand.
• Samsung Electronics and SK hynix are well positioned as leading memory suppliers.