Analysts have raised price targets for the Korean pair by roughly 30% this quarter, with Morgan Stanley heralding a memory “supercycle” as a supply-demand mismatch looms over next year. The stocks are still seen as comparatively cheap, and investment by overseas funds is seen picking up.
The blistering rally that has added more than US$100 billion in market value to South Korea’s two largest chipmakers this month is seen continuing, as the artificial intelligence boom spreads to less exciting corners of the tech world.
While SK Hynix Inc has surged on its dominance in the high-bandwidth memory chips that are key for AI applications, bets have risen on a catch-up for its larger rival Samsung Electronics Co. Meanwhile, demand is growing from AI processor makers beyond Nvidia Corp, and knock-on benefits are rippling through to older-tech chips that had been seen as dead in the water.
