Samsung Electronics and SK Hynix experienced volatile trading on July 22, with both stocks surging over 7% and 9% intraday before retreating by market close amid caution ahead of Alphabet's earnings announcement. Samsung Electronics closed at 260,500 won, up 0.58%, while SK Hynix closed at 1,830,000 won, down 0.33%, according to the Korea Exchange. Foreign investors purchased a combined 1.8 trillion won of the two stocks in a single session, reflecting renewed confidence despite recent concerns over Chinese AI models and peak-cycle fears. Domestic and global securities firms stated the stocks have reached historically low valuations, with 12-month forward price-to-earnings ratios around 4x—below levels seen during the 2008 global financial crisis—as high-bandwidth memory (HBM) supply contracts and data center demand stabilize earnings volatility.
Samsung Electronics and SK Hynix Retreat After Intraday Surge on July 22
Samsung Electronics and SK Hynix both rose sharply during the July 22 session, with Samsung gaining over 7% and SK Hynix climbing more than 9% intraday, according to the Korea Exchange. However, selling pressure emerged late in the session ahead of Alphabet's earnings release, causing Samsung to close at 260,500 won (up 0.58%) and SK Hynix to close at 1,830,000 won (down 0.33%). The intraday volatility reflected investor caution despite strong buying interest earlier in the day.
Foreign Investors Purchase 1.8 Trillion Won in Single Session
Foreign investors purchased 1,256.5 billion won of SK Hynix and 586.7 billion won of Samsung Electronics on July 22, totaling over 1.8 trillion won in net buying for the two stocks, according to Korea Exchange data. Over three trading sessions starting July 20, cumulative foreign net purchases of the two stocks reached 3,045.7 billion won. Analysts noted this substantial capital inflow provided strong downside support despite the late-session price retreat.
Analysts Cite 12-Month Forward PER Below 2008 Crisis Levels
The 12-month forward price-to-earnings ratios for Samsung Electronics and SK Hynix currently stand around 4x, below the 6.27x level recorded during the 2008 global financial crisis, according to securities firms. LS Securities researcher Jung Da-woon stated Samsung Electronics trades at a 12-month forward PER of 4.42x and SK Hynix at 4.73x. Jung assessed these levels as excessively low and stated that current price levels present a valid low-price buying strategy even considering the second-half test of their market leadership roles.
Morgan Stanley assessed that the KOSPI index and semiconductor manufacturers' valuations have approached historically low levels. JP Morgan's Mixo Das, head of Korea equity strategy, stated that concerns about technological innovation reducing memory demand have been raised recently but have not yet been confirmed in the actual market. Daol Investment Securities maintained an overweight recommendation on the semiconductor sector and named Samsung Electronics, SK Hynix, and materials component company VM as top picks.
KB Securities Maintains 4.2 Million Won Target for SK Hynix
KB Securities maintained a 4.2 million won target price and 'buy' rating for SK Hynix, citing structural growth centered on AI data centers starting next year. KB Securities Research Division Head Kim Dong-won stated that the proportion of sales to big tech and AI data centers reaches 70% due to increased HBM proportion and long-term contract expansion, which will simultaneously raise earnings stability and valuation. Kim stated the 2026-2027 upward cycle differs from the past as it represents a structural growth period led by AI data centers.
Kim stated that even if memory required per inference session decreases to one-third, total memory demand increases sevenfold if usage expands twentyfold. Kim assessed that AI model and semiconductor efficiency improvements are not factors for AI investment reduction but rather factors that further stimulate AI demand through service price declines and usage expansion.
Daol Investment Securities researcher Go Young-min stated that if the AI capital expenditure expansion trend is reconfirmed through major big tech earnings announcements, the semiconductor sector's atmosphere could reverse in August. Go stated that once big tech investment directions and memory long-term contract conditions become concrete, stock price recovery will accelerate, making a strategy of increasing positions at current price levels valid.
FAQ
What prices did Samsung Electronics and SK Hynix close at on July 22?
Samsung Electronics closed at 260,500 won, up 0.58%, while SK Hynix closed at 1,830,000 won, down 0.33%, according to the Korea Exchange.
How much did foreign investors purchase of Samsung Electronics and SK Hynix on July 22?
Foreign investors purchased a combined 1.8 trillion won of the two stocks on July 22, consisting of 1,256.5 billion won in SK Hynix and 586.7 billion won in Samsung Electronics, according to Korea Exchange data.
What are the current 12-month forward PER levels for Samsung Electronics and SK Hynix?
Samsung Electronics trades at a 12-month forward PER of 4.42x and SK Hynix at 4.73x, both around 4x and below the 6.27x level recorded during the 2008 global financial crisis, according to LS Securities researcher Jung Da-woon.
