The fallout from the 'Broadcom shock' continued on June 8, as major players in the KOSPI, Samsung Electronics and SK Hynix, experienced significant declines for the second consecutive trading day. Investors are increasingly concerned, but analysts suggest that interpreting the recent downturn as a sign of worsening market conditions may be premature, emphasizing that this could be a buying opportunity.
According to the Korea Exchange, Samsung Electronics closed at 295,500 won, down 10.18% from the previous trading day, while SK Hynix finished at 1,911,000 won, a decrease of 7.68%. Both stocks have seen declines for three and four consecutive trading days, respectively.
Market attention is focused on whether the recent adjustments indicate a peak in the semiconductor sector or if they represent a temporary pause in an upward trend. Experts generally believe that it is too early to worry about a downturn in the industry.
Han Ji-young, an analyst at Kiwoom Securities, stated, "The sharp drop in U.S. semiconductor stocks cannot be attributed to a peak-out in memory cycles or a slowdown in AI demand. Instead, it appears to be a correction prompted by accumulated fatigue and supply-demand pressures following the significant price increases in these sectors, combined with rising U.S. market interest rates due to employment surprises."
There are also opinions in the securities industry suggesting that this correction should be viewed as a buying opportunity. On the same day, SK Securities assessed the recent stock adjustments as a chance to buy, maintaining target prices for Samsung Electronics and SK Hynix at 610,000 won and 4,000,000 won, respectively. NH Investment & Securities also raised its target price for Samsung Electronics from 490,000 won to 530,000 won and for SK Hynix from 3,100,000 won to 3,200,000 won.
Han Dong-hee, an analyst at SK Securities, emphasized, "The structural bottlenecks in memory during the AI era and the strong performance of memory companies are not values that change quickly. This correction is an opportunity." Ryu Young-ho, an analyst at NH Investment & Securities, noted, "As AI spreads, various components are experiencing bottlenecks, particularly in semiconductors, where demand is growing faster than supply."
Jensen Huang, CEO of NVIDIA, also commented during a briefing with SK Group, stating, "We are witnessing tremendous demand globally for more AI factories, and our business is thriving. We are just at the beginning stages of building AI infrastructure, and the future looks very bright."
However, there are warnings about the potential for increased short-term volatility. Kim Ji-hyun, an analyst at Daol Investment & Securities, cautioned, "Given the high valuation pressures in semiconductors and concerns about rising oil and intermediate goods prices, it is essential to be vigilant about volatility in June and July."
* This article has been translated by AI.
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