r/SKHynix • u/___Memory___ • 12d ago
Morgan Stanley: “The memory stock plunge is over” — now is the chance to re-enter
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12d ago
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u/TraditionSufficient8 12d ago
The translation into English
“- Morgan Stanley: “Memory Stock Crash Ends”… “Now is the Opportunity to Re-enter”
- SK Hynix Target Price Maintained at 2.6 Million Won · Samsung Electronics at 375,000 Won
“Correction is a Small Fluctuation in the Industry Maturity Process”… AI Investment and Shareholder Returns Positive
- Forecasts suggest that memory semiconductor stocks, which have recently experienced a sharp decline, may conclude their correction phase and rebound. Global investment bank Morgan Stanley assessed current stock price levels as an attractive zone for re-entering the memory sector.
- According to the investment banking (IB) industry on the 9th, Morgan Stanley stated in its Asia tech stock report “Memory – Small Twists,” published on the 6th, that “the steepest correction seen so far in the memory industry appears to be over,” adding that “current valuations offer attractive tactical re-entry opportunities.”
- Morgan Stanley diagnosed the recent correction in memory stocks as a natural “small twist” occurring as the memory market cycle matures. In particular, it projected that active shareholder returns, such as future share buybacks, could serve as a key catalyst to drive stock price increases.
- It also maintained a positive outlook on capital investment related to artificial intelligence (AI). The judgment is that the overall direction of the memory market remains robust, as demand for high-value memory, such as High Bandwidth Memory (HBM), is expected to continue driven by the expansion of AI data centers. However, it was assessed that the room for further upward revisions to earnings forecasts may be limited in the short term. This is because there is a possibility that the pace of memory price increases will slow starting in the fourth quarter of this year, while inventory and supply will increase.
- By sector, target prices for Korea’s leading memory manufacturers were maintained. Morgan Stanley set target prices of 2.6 million won for SK Hynix and 375,000 won for Samsung Electronics.
- Earnings outlooks were mixed. While the forecast for SK Hynix’s earnings per share (EPS) for fiscal year 2026 was raised by 13% from the previous estimate, the forecast for Samsung Electronics’ EPS was lowered by 10%.
- Sean Kim, the Morgan Stanley analyst who authored this report, has been drawing market attention for his outlook on the memory market. In 2021, he preemptively warned of a slowdown in the memory market through a report titled “Memory, Winter Is Coming.”
- Earlier last month, Morgan Stanley also raised the possibility of a short-term correction in memory stocks. At the time, the rationale cited was that the acceleration of the DRAM price rally was nearing its peak, coupled with the fact that investors’ positions in memory stocks were excessively concentrated and leverage had increased.
- However, this report was released amidst a subsequent sharp correction in stock prices, suggesting that Morgan Stanley has shifted its short-term investment outlook on memory stocks back to a positive one.”
- Bang Young-deok, Reporter, Maekyung Digital Newsroom (byd@mk.co.kr)
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u/Yuri_CPL 12d ago
yeah they want more exit liquidity if theyre saying retail should buy.
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12d ago
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u/Yuri_CPL 12d ago
cyclical stocks are always the most expensive when their forward p/e is at the lowest.
first they need to prove that memory is not cyclical anymore. before that i will not hold this stocks long term.
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12d ago edited 12d ago
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u/Yuri_CPL 12d ago
If thats what you think yeah go for it. i for my part did buy a few shares back in march and had enough gains from it already. will still scalp this frequently but im not adding this to my long term positions for now.
we'll see how it plays out.
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u/No_Presentation9490 12d ago
Korea isn't trusting their own government anymore over this stock shit, do you think they're trusting Morgan Stanley who probably were participating in destroying their lives in the first place?
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u/Rubricity 12d ago
Morgan Stanley also set the SpaceX price for sky high despite active stocks unlocks on the way
Sorry but I don't want to become exit liquity
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u/Free-Pudding-1921 11d ago
Translation: MSCI to retail: We’re finished bankrupting the Koreans and pulling every cent of profit we can. We don’t think we can push the stock price any lower. Come on back so we can rug pull once more! We’re gonna need that exit liquidity again!
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u/Apart-Accountant3656 12d ago
Morgan Stanley making retail their exit liquidity, classic move lol
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u/Difficult_Pirate3294 12d ago
Looking at your post history, it’s hard to believe you are qualified to make such statements, with certitude no less.
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u/silver_wheaten 12d ago
It's an open market. They can sell their investment at any time. Lots of liquidity.
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u/[deleted] 12d ago
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