South Korea Meritz Securities: Now is not the time to sell Samsung and SK Hynix, the market has made a significant misjudgment

BlockBeats News, July 17, South Korea Meritz Securities researcher Kim Sunwoo stated that the market has excessively misunderstood the fundamentals of Samsung Electronics and SK Hynix. Currently, one should not make short-sighted and pessimistic judgments about the semiconductor sector based solely on fragmented information. Regarding rumors that SK Hynix has secured long-term supply agreements with major tech companies by lowering prices to win orders, Kim Sunwoo clarified that such arrangements are not merely price sacrifices but strategic investments aimed at locking in demand from the generative AI and AI data center markets in advance. The company is expanding its mid-to-long-term customer base through joint ventures and partnerships. He predicts that the DRAM demand fulfillment rate for the second half of this year will only be 75% to 80%, and it may further drop to the 60% range next year. Even when calculating actual end-user demand alone, the fulfillment rate is only about 70%, indicating that supply shortages will deepen. Kim Sunwoo believes that Samsung Electronics' stock buybacks, cancellations, and dividends, as well as SK Hynix's potential introduction of special dividends, will help alleviate market concerns. He also noted that both companies are currently in a phase of severe undervaluation and excessive adjustment. [Original Link]