SK Securities: Memory Stocks Are the Cheapest Amid the AI Era Bottleneck

Odaily Planet Daily News: South Korea's SK Securities continues to believe that the memory re-rating process is still in its early stages. SK Securities pointed out that TSMC enjoys a high valuation because it is a platform-based manufacturer capable of helping clients achieve future development, and the same logic applies to memory in the AI era. Structurally improved profitability and visibility, along with enhanced shareholder returns based on this, mean that the memory re-rating and the unwinding of the discount on Korean memory stocks will proceed hand in hand.

Currently, Samsung Electronics and SK Hynix have a 12-month price-to-earnings ratio of approximately 6.0 times. Their stock prices indicate that they remain the cheapest stocks in the AI era bottleneck. As value shifts and is redistributed within the industry, the indicator to trust and follow is the change in profitability, rather than valuation frameworks based on the past. SK Securities maintains its overweight rating on semiconductors.