[Financial News] As major semiconductor stocks undergo a sharp correction, investors are growing wary of a possible peak. But brokerage firms are raising their price targets instead, signaling even greater optimism. They say the recent pullback is driven more by sentiment than fundamentals, and that memory demand, a key driver of share price gains, is likely to keep rising. According to FnGuide on the 24th, three brokerages issued reports on SK hynix and one on Samsung Electronics between the previous day and the 24th. Specifically, Daol Investment & Securities, KB Securities and Hyundai Motor Securities covered SK hynix. Daol Investment & Securities issued the report on Samsung Electronics. Even though both stocks plunged the previous day, brokerages raised their target prices. Daol Investment & Securities lifted its targets for Samsung Electronics and SK hynix to 585,000 won and 4.2 million won, respectively. Hyundai Motor Securities set a target of 3.3 million won for SK hynix. The reason cited is that semiconductor stocks have evolved from a classic cyclical industry, where profits come and go, into one that can generate stable earnings. Analysts also said the recent decline is largely a profit-taking phase, as there has been no fundamental damage, making the stock drop temporary. In fact, SK hynix and Samsung Electronics closed the previous day down 12.47% and 12.31%, respectively, but rose 0.98% and 9.84% on the day. The rebound appears to have been driven by bargain hunting from individual and institutional investors who expect further upside. On the day, individuals bought a net 1.9207 trillion won of SK hynix shares, while institutions bought a net 1.0439 trillion won of SK hynix shares and 972.5 billion won of Samsung Electronics shares. Kim Dong-won, a researcher at KB Securities, said, "The sharp drop in SK hynix shares the previous day was caused by a sudden deterioration in investor sentiment," adding, "But catalysts for further gains remain, including memory demand and the listing of American Depositary Receipts (ADR). At this point, only sentiment has changed, while industry conditions and earnings are improving further, so the correction should be seen as an opportunity to increase exposure." Ko Young-min, a researcher at Daol Investment & Securities, said, "Samsung Electronics is expected to post revenue of 775 trillion won and operating profit of 43.8 trillion won this year, up 133% and 905%, respectively, from a year earlier." He added, "Long-Term Agreements (LTA) with major clients are in the final stage, and HBM4 will also see a gradual expansion in the third and fourth quarters. Overall average selling prices (ASP) are likely to remain even firmer than previously expected. The current pullback appears to be a good opportunity to respond with an aggressive strategy of increasing exposure." The supply shortage in memory, a factor supporting share prices, is expected to last through 2028. Noh Geun-chang, a researcher at Hyundai Motor Securities, said, "Given the capital expansion of data center customers and rising HBM demand for NVIDIA's Rubin Ultra AI accelerator, which is expected to begin full-scale commercialization in 2028, the supply shortage is likely to continue even in 2028." He added, "As Harness Engineering is strengthened in AI environment design, the shortage of memory semiconductors for data centers could deepen further if Agentic AI penetration expands more than the market expects." yimsh0214@fnnews.com Lim Sang-hyuk Reporter