"Hasn't Everyone Bought It?"... 'Samsung Electronics and SK Hynix Talk' Sweeps Through Restaurants

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[Financial News] Office worker A, 47, finally made up his mind on the way to work on the morning of the 20th. He decided to sell part of the Samsung Electronics shares he had bought during the recent rally. After the KOSPI broke through 8,000 points and then plunged, concerns grew that a correction might be coming, especially as weak U.S. semiconductor stocks and foreign selling added to the pressure. But the mood was completely different when he went into a restaurant in Yeouido at lunchtime. At every nearby table, people were saying things like, "Samsung Electronics stock is only getting started," "SK hynix could even reach 3 million won," and "It will go higher when the HBM cycle begins." In the end, A canceled his sell order.
According to the securities industry on the 21st, the so-called "Samsung Electronics and SK hynix" pairing has recently become a central topic in everyday conversations among workers and investors in Yeouido. It has gotten to the point where people reportedly ask, "Did you buy Samsung Electronics and SK hynix?" before saying, "How have you been?" As the AI semiconductor rally drags on, the concentration of individual investors is also becoming more extreme.
Even during the recent correction in share prices, individual investors have actually been buying more of Samsung Electronics and SK hynix. According to the KRX, retail investors bought 767.1 billion won worth of Samsung Electronics shares on a closing-price basis the previous day. That marked net buying for four straight trading days since the 15th, and 10 trading days of net purchases over the past 11 sessions since the 7th, with only one day, the 14th, excluded. SK hynix has also seen 11 consecutive trading days of net buying by individual investors since the 6th. Market watchers say this shows that, among retail investors, the idea that a semiconductor pullback is ultimately a buying opportunity has effectively become a rule of thumb.
Aggressive target price hikes from brokerage firms are also fueling the mood. Korea Investment & Securities raised its target price for Samsung Electronics by 54% from 370,000 won to 570,000 won the previous day. The revision reflected both the company's earnings momentum and the potential for greater shareholder returns.
There is also a steady view that Samsung Electronics could become the biggest beneficiary of the AI semiconductor supercycle, thanks to its advantage in production capacity. As Long-Term Agreements are expanding, especially among Big Tech companies, concerns over supply shortages are adding to expectations that prices for general-purpose DRAM will rise faster than previously anticipated.
Cha Min-sook, a researcher at Korea Investment & Securities, said, "We have raised our forecast for the second-quarter increase in average selling prices for general-purpose DRAM from 30% to 60%." She added, "The earnings leverage from rising general-purpose memory prices will be much greater than expected."
Expectations for SK hynix are also rising quickly. Korea Investment & Securities set its target price for SK hynix at 3.8 million won, an 85% increase from the previous estimate. That is the highest level among domestic brokerages. Nomura Securities recently also set its target price for SK hynix at as much as 4 million won.
Expectations for shareholder returns are also lifting investor sentiment. Samsung Electronics is expected to channel its large cash flow growth into share buybacks, retirement of treasury shares, and higher dividends. SK hynix is also seen as having entered a period of structural profit growth as its dominance in the AI memory market strengthens.
One brokerage official said, "The concentration on Samsung Electronics and SK hynix is likely to continue for some time." He added, "Despite concerns over short-term gains and rising volatility, many retail investors strongly believe that AI semiconductors will keep trending upward."
Another industry official said, "Unlike in the past, Samsung Electronics and SK hynix now effectively determine the overall tone of the market." He added, "As the perception spreads that only those who failed to buy are being left behind, the flow of retail money into these stocks is becoming even stronger."
dschoi@fnnews.com Choi Du-seon Reporter