[Special Stock] Jeju Semiconductor Gains Favor with Samsung and Apple On-Device AI... Real Beneficiary of AI Smartphones

Jeju Semiconductor is showing strong performance. The activation of on-device AI is increasing demand for low-power semiconductors, which appears to be influencing the stock price.

As of 9:18 AM on the 27th, Jeju Semiconductor was trading at 6,750 KRW, up 560 KRW (9.05%) compared to the previous trading day.

Researcher Lee Seung-hwan from Research Alme stated, "The era of 'on-device AI technology,' where AI is applied directly to smartphones or PCs without going through servers or the cloud, has arrived," and introduced, "On-device AI is a technology that implements AI functions within devices themselves, such as mobile phones or autonomous vehicles."

He added, "Recently, after Qualcomm held the 'Snapdragon Summit 2023,' companies like Apple and Samsung Electronics have competitively revealed plans to directly integrate AI technology into devices," emphasizing, "The AI growth trend, which was previously limited to servers, is expanding to general devices, making market expansion possible."

The researcher pointed out that the device that will spread the on-device AI craze is the AI smartphone, explaining, "One of the key chips to realize this is LPDDR."

He further explained, "Not only AI smartphones but also AI home appliances, which will expand connectivity in the future, will increase the importance of LPDDR," and stated, "Jeju Semiconductor is a leading domestic fabless company designing LPDDR."

Jeju Semiconductor's LPDDR is a Low Power (LP) version of DDR (Double Data Rate), which doubles the processing speed of DRAM while minimizing power consumption. Jeju Semiconductor possesses technology that maximizes processing speed while minimizing power consumption.

The researcher estimated that Jeju Semiconductor will achieve sales of 185.8 billion KRW and operating profit of 34 billion KRW next year, which are increases of 19.1% and 77.1%, respectively, compared to this year's estimates. He said, "Although the company's stock price has risen significantly recently, it had been undervalued in the market until now," and predicted, "Considering the sharp rise in profit margins from next year and the importance of low-power semiconductors in the on-device AI market, there is still significant upside potential in the stock price."