[Edaily Reporter kyoungeun kim ] In early trading on the 29th, SamsungElectronics(005930)and SK hynix(000660)are both trading lower.
According to MP Doctor, SamsungElectronics is trading at 321,500 won, down 18,000 won (5.30%) from the previous day, while SK hynix is trading at 2,536,000 won, down 137,000 won (5.13%) from the previous day.
Analysts say that negative factors that have persisted since last week are weighing on investor sentiment. Following the spread of concerns over so-called “chipflation”—triggered by Apple’s decision to raise product prices due to rising memory costs—and compounded by rumors of a delay in OpenAI’s initial public offering (IPO), selling pressure is spreading across the entire memory sector. On the 26th (local time), semiconductor stocks in the U.S. market also showed weakness across the board, with Micron plunging 7%. Investor sentiment deteriorated further following reports that Apple is lobbying the U.S. government for approval to purchase memory chips made in China.
SamsungElectronics’ earnings outlook is also facing downward pressure. KIWOOM Securities announced on the same day that SamsungElectronics’ second-quarter operating profit is expected to be 89 trillion won, falling short of the previous forecast of 100 trillion won. Park Yu-ak, an analyst at KIWOOM Securities, explained, “We believe the amount set aside for performance-based bonuses will be larger than expected.” While the year-over-year price growth rates for general-purpose DRAM and NAND are expected to exceed initial expectations at 58% and 75%, respectively, the provision for performance bonuses is expected to offset these gains. The foundry and system LSI (S.LSI) divisions are also projected to continue posting operating losses in the second quarter.
However, Analyst Park noted, “This is due to the timing of the provision for performance bonuses, and since there will be no significant change to the annual earnings forecast, the impact on the stock price will be limited,” and maintained a target price of 430,000 won and a “Buy” rating. He projected third-quarter operating profit at 114 trillion won, in line with the previous forecast.