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

Odaily Odaily reports that 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-type manufacturer that can help customers achieve future growth, and the same applies to memory in the AI era. Structurally improved profitability and visibility, along with enhanced shareholder returns, mean that memory re-rating will proceed in tandem with the unwinding of the discount on Korean memory stocks.

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