Samsung Electronics and SK Hynix staged an intraday rebound, driven by buying from institutional investors. In the early trading session, both stocks fluctuated around the previous day’s closing price amid the impact of Micron’s earnings release. Analysts in the securities industry suggested that concerns about the semiconductor cycle were fueled by Micron’s massive capital expenditure (CAPEX) and a slowing growth rate in gross profit margin. However, forecasts also indicate that the semiconductor cycle will persist, as Micron emphasized that memory supply shortages are expected to continue, citing an increase in long-term supply contracts.
As of 1:53 p.m. on the 1st, Samsung Electronics was trading at 273,000 won, up 5,000 won (1.86%) from the previous close. SK Hynix stood at 1,812,000 won, a gain of 36,000 won (2.0%). The rise in share prices is interpreted as a result of institutional investor selling pressure gradually easing. According to preliminary intraday data from Korea Investment & Securities’ Mobile Trading System (MTS), institutional investors sold 251,000 shares at 10:00 a.m., 176,000 shares at 11:20 a.m., and 31,000 shares at 1:20 p.m., progressively reducing the scale of their sales. SK Hynix also saw selling of 55,000 shares and 30,000 shares before shifting to net buying of 10,000 shares.
In the early trading session on the day, Samsung Electronics and SK Hynix traded around the previous close. It was interpreted that a tailwind did not reach major domestic semiconductor stocks, despite Micron reporting earnings that exceeded market expectations after the bell on the 30th (local time).
Micron announced that its adjusted earnings per share (EPS) for the fourth quarter of fiscal year 2026 (June–August) was $33.42. This figure surpassed the market consensus estimate of $31.72. Revenue also exceeded expectations, rising 379% year-on-year to $54 billion, compared with the forecast of $51 billion. The revenue guidance for September–November was also set at $61.5 billion, above the market outlook of $57 billion. Nevertheless, Micron’s after-hours share price fluctuated within a range of about 1%.
Experts in the financial investment industry analyze that the muted market reaction to such strong earnings is due to elevated expectations. They also noted that concerns were heightened by the fact that the gross profit margin guidance for the first quarter of fiscal year 2027 was 86.25%, slightly below the market estimate of 86.4%, and that capital expenditure (CAPEX) expanded significantly. Micron plans to invest approximately $250 thousand won in the first half of next year, an amount approaching its total annual capital expenditure for this year.
Heo Jae-hwan, Managing Director at Eugene Investment & Securities, stated, “Capital expenditure increased more than expected, and concerns have spread across the market that the pace of revenue growth may gradually slow.” He added, “The memory sector has a history of significant cyclical fluctuations following increases in capital expenditure, so caution regarding a ‘peak-out’ continues.”
However, during its conference call, Micron emphasized that the current results represent not merely a rebound in memory prices, but a structural cycle where supply shortages will persist through 2027 and 2028. In fact, the number of binding long-term supply contracts (SCAs) announced by Micron increased from 16 to 26. The company also expressed the view that current supply is insufficient to meet demand.
Forecasts in the securities industry also suggest it is premature to conclude that the memory cycle has peaked, just because the stock price reaction to earnings surprises has dulled. As memory makers’ results and guidance have consecutively exceeded market expectations, share prices may have simply become insensitive to positive news, but this implies that the DRAM cycle has not yet reached its midpoint.
Kim Sun-woo, a researcher at Meritz Securities, said, “While past memory demand centered on smartphones and PCs was consumption-based, corporate demand for AI (artificial intelligence) advancement is investment-based, making competitive spending inevitable.” He added, “Given that limited capital expenditure in 2024–2025 makes it highly likely that supply constraints will continue through 2027, memory prices could rise further from the end of this year into early next year.” He went on to predict, “In this process, as profit estimates for memory makers for 2027 are revised upward again, this will serve as a strong driver for share price appreciation.”
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