JPMorgan Chase: The pullback in South Korean memory chip stocks presents a medium-term buying opportunity, recommending an overweight position on Samsung Electronics and SK Hynix.
JPMorgan Chase's Asia Pacific Equity Research team stated in their latest report published on October 15 that the Q3 earnings season in South Korea will kick off in the week of October 19, and the recent sharp pullback in memory chip stocks is creating a medium-term buying opportunity. After visiting Asian investors, Jay Kwon, an analyst at the firm, believes that memory stocks have fallen approximately 6% and 15% over the past month and three months, respectively, while the Philadelphia Semiconductor Index rose about 10% and fell about 4% over the same periods. This divergence provides a favorable risk-reward entry point for "duration trades." JPMorgan Chase advises investors to accumulate on dips during the recent correction and has identified core overweight picks for the next six months, including Samsung Electronics, SK Hynix, Kioxia, Samsung Electro-Mechanics, ISU, and ISC. Affected by higher-than-expected US inflation overnight and concerns about an AI valuation bubble, the South Korean stock market experienced a significant decline today, with both Samsung Electronics and SK Hynix falling by nearly 10%.
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Disclaimer: This content reflects the author's personal views only and does not constitute investment advice.
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