JPMorgan says the pullback in storage stocks presents a buying opportunity, naming Samsung Electronics and SK Hynix as core overweight targets.
2026.10.15 15:07:44
JPMorgan’s Asia Pacific equity research team said South Korea’s third-quarter earnings season will launch the week of October 19, and the recent sharp pullback in memory chip stocks is creating a medium-term buying opportunity. The bank dubs the current phase the “expectation reset season” for memory stocks, noting a cognitive disconnect between market worries over AI spending sustainability and memory chip supply-demand fundamentals, with excessive sentiment offering a favorable risk-reward window to bet on a “longer, higher” upward cycle for the memory industry. JPMorgan data shows memory stocks have dropped ~6% and ~15% over the past month and three months respectively, while the Philadelphia Semiconductor Index gained ~10% and fell ~4% in the same periods. The bank’s core overweight picks for the next six months include Samsung Electronics, SK Hynix, Kioxia, Samsung Electro-Mechanics, ISU, and ISC, spanning memory chips and their supporting industrial chain. JPMorgan sees the October 19-starting earnings season as a key verification window, focusing on corporate earnings, memory spot prices, AI-related orders, and capex changes. If memory supply-demand continues to weaken, catalysts fail to materialize, or corporate earnings are broadly revised downward, the bank will reassess its above view.
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