"SK hynix at 1.6 million won? Is it too late to jump in now"... Semiconductor 'crazy rally' pushes target prices higher

[The Financial News] With the KOSPI now on the verge of breaking through the 6,000 mark just one month after surpassing 5,000, leading semiconductor stocks Samsung Electronics and SK hynix have each climbed past 200,000 won and 1 million won.

On the 24th, the KOSPI closed at 5,969.64, up 123.55 points (2.11%) from the previous session's 5,846.09. Dragged down below the 5,800 level early in the session by declines in the three major U.S. stock indexes, the KOSPI quickly rebounded on institutional buying and moved to just shy of the 6,000 level.
After ending last year at 4,214.17, the KOSPI broke through the 5,000 mark intraday on the 22nd of last month and has since continued a sharp rally. It took only three weeks after crossing 5,000 to move above 5,500, and now a break above 6,000 is within sight, putting even the 7,000 level within range.
At the center of this intense KOSPI surge are Samsung Electronics and SK hynix. Samsung Electronics closed at 200,000 won, up 3.63% from the previous day, setting a new all-time high. SK hynix also jumped more than 5% to finish at 1,005,000 won, entering the 1 million won range for the first time ever.
The industry-disrupting impact of AI that has shaken the New York stock market appears to be working as a positive factor for Korean semiconductor companies. Lee Kyung-min, a researcher at Daishin Securities, stated, "The more the efficiency of AI is maximized, the more demand inevitably increases for the infrastructure needed to run it," adding, "Semiconductor names such as Samsung Electronics and SK hynix have been identified as beneficiaries of AI-driven industry disruption and have shown strong gains."

As earnings forecasts for KOSPI, led by semiconductor stocks, continue to push the index higher, target prices for Samsung Electronics and SK hynix are also trending upward. In particular, for SK hynix, there is a growing view that the stock still has room to rise even after its recent sharp rally.
SK Securities has raised its target prices for Samsung Electronics and SK hynix to 260,000 won and 1.6 million won, respectively, the highest projections among domestic brokerages. Han Dong-hee, a researcher at SK Securities, explained the upgrade, saying, "Low inventories among suppliers, structural demand for AI memory, and stronger pricing power due to capacity expansion constraints are far exceeding expectations."
bng@fnnews.com Kim Hee-sun Reporter