Samsung Electronics and SK Hynix Fall to Historic Valuation Lows; PERs at 4.8x and 5.3x on July 9

META4.68%
AMZN1.42%
NVDA-0.70%
According to LS Securities analyst Hwang San-hae, Samsung Electronics and SK Hynix hit historic valuation lows with forward price-to-earnings ratios of 4.8x and 5.3x respectively on July 9, as stock prices fell despite rising profit forecasts driven by AI memory demand. However, low valuations may not signal undervaluation in this cycle. The analyst noted that during periods of rapid earnings reassessment—such as those experienced by Alphabet, Meta, Amazon, and Nvidia—low PERs often reflect market verification of profit sustainability and may include forward expectations of supply expansion and future margin pressure. Memory chip operating profits have grown to represent 57 percent of hyperscaler capital expenditures, raising sustainability concerns.
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