On July 14, Samsung Electronics and SK Hynix, which had plummeted over 10% the previous day, are experiencing a rebound during trading hours. This recovery appears to be driven by bargain buying following the sharp decline.
According to the Korea Exchange, as of 10:14 a.m., Samsung Electronics shares rose by 15,000 won (4.13%) to 265,000 won. SK Hynix also saw an increase of 35,000 won (1.90%), reaching 1,880,000 won.
Both stocks had dropped significantly the day before due to concerns over a slowdown in the memory market and profit-taking sales. Notably, SK Hynix fell by more than 15%, while Samsung Electronics dropped over 10%, leading the decline in the KOSPI index.
Today’s rebound is likely attributed to perceptions of excessive losses prompting bargain buying. Market analysts believe that future stock movements will depend on the outlook for the memory market and the recovery of foreign investment.
Lee Kyung-min, a researcher at Daishin Securities, stated, “At the end of this month, earnings reports and conference calls from major tech companies, including Samsung Electronics and SK Hynix, are scheduled. This could alleviate uncertainties regarding the AI industry and semiconductor market, potentially leading to improved earnings expectations.”
KB Securities assessed that the structural improvement trend in the memory market remains valid, considering Meta's expansion of data center investments and the long-term supply agreements (LTA) by big tech companies.
Kim Dong-won, a researcher at KB Securities, predicted, “2027 will be the tightest supply period in the 70-year history of semiconductors. With virtually no new production capacity for general memory and the full-scale implementation of long-term supply contracts by big tech, the supply shortage is likely to worsen.”
Additionally, Meta's establishment of a 7GW AI data center this year, along with plans for further investments next year, is expected to alleviate concerns about the sustainability of AI investments. Kim noted that if Meta formalizes additional AI investment plans during its earnings announcement at the end of this month, it could help resolve market anxieties.
* This article has been translated by AI.
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