Samsung and SK Hynix shares rebounded on Wednesday, recovering from early losses as bargain buying offset fears of a broader sell-off in AI-related semiconductor stocks.
Samsung's shares rose as much as 1.4% after initially falling 4.4%, while SK Hynix surged 5.8% following a 5% drop at the open. The initial weakness mirrored declines in U.S. semiconductor stocks overnight.
Analysts remain optimistic about the semiconductor sector, noting that the earnings season is still in its early stages. They expect tight memory chip supply through the third quarter, which could support earnings and encourage bargain buying. Investor sentiment was also buoyed by optimism surrounding SK Hynix's planned U.S. listing.
However, analysts caution that while memory chip pricing is expected to remain favorable in the near term, price increases in the second half of 2026 may moderate due to a higher base of comparison. A Kiwoom Securities analyst lowered his target price for Samsung by around 9% to 390,000 won, citing rising costs for key components like CPUs and package substrates.
JPMorgan highlighted that memory pricing will be a primary earnings driver in the second half of the year. Despite increasing customer resistance to higher prices, supply is expected to trail demand. Conventional NAND chip pricing could outperform investor expectations, driven by strong demand from U.S. hyperscale data center operators.
Background
The market volatility was triggered by Samsung's preliminary second-quarter earnings, which projected a 19-fold jump in operating profit but fell short of elevated investor expectations. This sparked a broader retreat in AI-linked stocks in South Korea before spreading to Wall Street.
Looking ahead, investors will closely watch the semiconductor sector's earnings reports and pricing trends. The potential moderation of memory chip price increases in the latter half of 2026 could impact market dynamics.
