“Samsung Electronics and SK hynix shares are at liquidation-value levels; a major rebound is coming in November,” says an expert. What underpins the confidence?

[Financial News] As Samsung Electronics and SK hynix shares are posting their steepest losses since the 2008 global financial crisis, an expert says the current decline reflects excessive fear in the market.

On the 19th, Lee Kwon-hee, CEO of Wizwave, appeared on SBS Radio’s “Park Yeon-mi’s Money Lab” and offered this assessment of the recent sharp decline in semiconductor stocks and concerns over AI funding shortages.
Lee said shares of the country’s leading semiconductor companies had come very close to liquidation-value levels. “Even when market conditions were at their worst in the past, the price-to-book (P/B) ratio rarely fell below 1,” he said, noting that “a P/B ratio of 1 currently puts Samsung Electronics at around 190,000 won and SK hynix at around 1 million won.”
He continued: “For share prices to have fallen to liquidation-value levels means the worst-case scenario is being assumed. Current market prices imply that next year’s earnings will be halved, but global demand remains solid—in fact, there is talk in the industry of long-term supply agreements (LTAs) being signed through 2035.”

He also forecast that the fallout from concerns over funding problems and possible bankruptcies among AI data center companies shaking the market would be limited. “A report saying that 80% of U.S. cloud data centers could collapse was shocking, but neocloud companies account for around 10% of total demand for AI semiconductors,” Lee said. “Even if 80% of them fail, that amounts to only about 8% of the total.”
He explained: “Unlike during the dot-com bubble, data centers are tangible assets today. Even if some vulnerable companies are liquidated, there is ample demand from big tech companies like Apple, which are waiting to acquire them at bargain prices.”
He also cautioned that “hedge funds are using remarks by Broadcom’s chief executive officer (CEO) and other things as a pretext to target companies like CoreWeave, which are nearing debt maturities, and stoke fear,” adding that “investors should be wary of selling to cut losses based only on negative news.”

Lee identified Meta’s earnings announcement scheduled for this week as a key turning point for a rebound. “Meta announcing its earnings earlier than expected, based on the performance of its AI agent service, Muse, is a sign of confidence,” he said. “Expanding personalized AI services requires more data centers and additional semiconductor purchases, so Meta’s announcement could be a catalyst for reversing market pessimism.”
Finally, Lee stressed: “A powerful rally could emerge from November and December, as U.S. 10-year Treasury yields fall below 5% and political uncertainties, including the midterm elections, are resolved. If the late-July low is not breached, it is reasonable to view the current level as a period of base-building.”

[email protected] Seong Min-seo Reporter