Samsung Electronics and SK hynix shares are rising ahead of Meta's earnings announcement early Thursday Korea time. In early trading Wednesday, Samsung Electronics climbed above 220,000 won, while SK hynix rose above 1.3 million won. Analysts are maintaining their price targets and buy ratings for semiconductor stocks despite the gap between current share prices and their target prices.
Despite the gap between current stock prices and target prices in the semiconductor sector, brokerage firms are maintaining their target prices and "Buy" investment ratings.
As of 9:46 a.m. on the 21st, KOSPI heavyweight Samsung Electronics was trading at 222,500 won, up 11,000 won (5.20%) from the previous day. Although Samsung Electronics fell into the 200,000 won range the previous day, it recovered to the 220,000 won range within a single day.
SK Hynix, which holds a significant weight in the KOSPI alongside Samsung Electronics as one of the semiconductor duopoly, also crossed the 1.3 million won mark. At this time, SK Hynix stood at 1,303,000 won, up 80,000 won (6.54%) from the previous day.
The semiconductor sector is showing a broad-based rally. As of this moment, Doosan Tesna (13.18%), Comico (11.59%), YST (11.86%), Hanyang Digitech (10.50%), and Fidelix (10.32%) are all posting double-digit gains.
Following the strength of Sam-Hynix, stocks linked to them through equity stakes or business ties are also rising across the board. At this time, SK Square (5.26%), Samsung C&T (4.00%), and Samsung Electro-Mechanics (1.82%) are leading the gains in that order.
However, they have not fully recovered the losses from last week. On the 8th, the stock prices of Samsung Electronics and SK Hynix were in the 260,000 won and 1.68 million won ranges, respectively.
The rebound on this day is analyzed as a result of stimulated sentiment for contrarian buying following the recent sharp decline. Additionally, macro market factors such as falling international oil prices driven by expectations of U.S.-Iran negotiations and stable long-term interest rates also played a role.
Overnight, U.S. AI server company Super Micro Computer (SMCI) released earnings forecasts that surprised the market, reflecting investor expectations for capital investment in the semiconductor sector and subsequent revenue growth.
Brokerage firms noted that a rebound among large-cap stocks has been confirmed in the semiconductor sector and maintained their "Buy" investment ratings.
In its global memory report titled "AI Market Concerns and Memory Semiconductor Outlook," published on the 19th, Nomura Securities forecast that supply chain bottlenecks will persist in the memory market at least until 2028. Nomura Securities also selected Samsung Electronics and SK Hynix as stocks to watch, maintaining target prices of 670,000 won for Samsung Electronics and 4.7 million won for SK Hynix.
Mirae Asset Securities has also recently maintained its "Overweight" rating on semiconductors through a report. The target prices for Samsung Electronics and SK Hynix remain unchanged at 400,000 won and 3.1 million won, respectively.
Researcher Kim Young-geun of Mirae Asset Securities stated, "In a situation where it has been confirmed that AI demand is extremely robust with no signs of slowing, it is necessary to place faith in the optimistic outlooks of the leading group within the sector rather than excessive pessimistic interpretations."
No brokerage firms have adjusted their target prices for Samsung Electronics and SK Hynix since the beginning of this month. Meritz Securities actually raised its target price for SK Hynix from 3.1 million won to 3.2 million won on the 12th. Currently, the highest target prices presented by brokerage firms are 630,000 won for Samsung Electronics (Yuantar Securities) and 4.7 million won for SK Hynix (Korea Investment & Securities).
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