Svmuu News: South Korea’s SK Securities continues to believe that the memory sector’s re-rating process is still in its early stages.SK Securities notes that TSMC’s high valuation stems from its status as a platform-based manufacturer capable of enabling its customers’ future growth—and the same logic applies to memory in the AI era. Structurally improved profitability and visibility, coupled with enhanced shareholder returns built upon this foundation, suggest that the memory sector’s re-rating will proceed in tandem with the unwinding of the discount on South Korean memory stocks.
Currently, Samsung Electronics and SK Hynix trade at a 12-month price-to-earnings ratio of approximately 6.0x, and their stock prices indicate they remain the cheapest stocks among those facing bottlenecks in the AI era. As value shifts and is redistributed within the industry, the key metric to trust and follow is the change in profitability, rather than valuation frameworks based on the past.SK Securities maintains its “Overweight” rating on the semiconductor sector.