JPMorgan views the pullback in memory stocks as a medium-term buying window, with Samsung Electronics and SK SK Hynix receiving core overweight ratings

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JPMorgan says the pullback in memory stocks presents a buying opportunity; Samsung Electronics and SK SK Hynix named core overweight picks

BlockBeats news:October 15, JPMorgan's Asia-Pacific Equity Research team stated that South Korea's third-quarter earnings season will begin in the week of October 19, and that the recent sharp pullback in memory-chip stocks is creating a medium-term buying opportunity. The bank describes the current phase as an “expectations reset season” for memory stocks, believing there is a perception gap between market concerns over the sustainability of AI spending and the supply-demand fundamentals of memory chips. Overshot sentiment provides a favorable risk-reward window for positioning for a “longer and higher” upcycle in the memory industry.

JPMorgan data show that memory stocks fell დაახლოებით 1 months and 3 months by approximately 6%and 15%, respectively. Over the same periods, the Philadelphia Semiconductor Index rose by approximately 10%and fell by approximately 4%. The bank's core overweight picks for the next 6 months include Samsung Electronics,SK SK Hynix, Kioxia, Samsung Electro-Mechanics,ISU and ISC, covering memory chips and related supporting industry chains.

JPMorgan views the earnings season beginning October 19 as a key validation window, focusing on corporate earnings performance, memory spot prices,AI-related orders, and changes in capital expenditures. If memory supply and demand continue to weaken, catalysts fail to materialize, or corporate earnings are broadly revised downward, the bank will reassess the above view.

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