The unprecedented memory supercycle created by AI has begun, Samsung Electronics operating profit 323 trillion won. How far will semiconductor stocks go?

Summary

Lee Hyung-soo argues that AI-driven demand has triggered a structural memory supercycle, making memory semiconductors a strategic asset with sustained demand. He highlights that Samsung Electronics and SK Hynix will benefit significantly, with valuations still cheap on a growth-adjusted basis. He notes a potential correction in H2 2025 when the price cycle shifts to volume, but sees that as a buying opportunity. The down cycle is expected around 2027-2028.

• Lee believes memory semiconductors are in an unprecedented long-term supercycle.
• AI infrastructure spending by hyperscalers is driving shortages across DRAM and NAND.
• Samsung and SK Hynix are key beneficiaries with potential for multiple expansion.
• A correction may occur in H2 2025 as the cycle shifts from price to volume.
• Lee views any correction as a buying opportunity given strong underlying demand.
• Downcycle is forecasted for 2027-2028 but cushioned by long-term contracts.
• NAND demand is also surging due to AI inference and new memory tiers.
• US Treasury yield above 4.5% is a risk factor for tech stocks.