Daishin: "Semiconductors Offer Higher Returns Than Risks... Stock Prices Likely to Rise Further"

Daishin Securities stated on June 18 that the semiconductor industry is currently in a phase where the risk-to-return ratio is highly favorable, and predicted that the rally in related stocks, including SK Hynix, would continue.

Ryu Hyungkeun, a researcher at Daishin Securities, maintained a buy recommendation on semiconductor stocks in his report titled "Semiconductors and Related Equipment - Reasons for Further Upside," released on this day. He explained, "Opportunities for memory semiconductors continue to expand amid the proliferation of the AI ecosystem and strategic changes among suppliers in the product market," adding, "Stocks are still positioned in a zone where returns are high relative to risks."

Recently, with the rebound in semiconductor stock prices, SK Hynix has surpassed its previous high, and Samsung Electronics is also on the verge of entering the 60,000 won range.

He noted, "The market is focused on finding new catalysts," and highlighted two changes: strategic shifts in the industry in the general-purpose market, and new products driving growth in the artificial intelligence (AI) sector.

Specifically, he pointed out, "If there is a difference from the previous cycle, it is that the industry now faces a common adversary in Chinese semiconductors," adding, "Efforts to reduce risks from Chinese semiconductors are already being implemented by existing suppliers."

He continued, "China is actively reducing the production of older products it has entered, narrowing the price gap with new products, and plans to rapidly shift customer demand to advanced products through this strategy." He predicted, "As AI accelerates the upgrade of semiconductor specifications, an environment favorable for shifting customer demand will be created."

He further added, "As Samsung Electronics is working to improve processes and products in preparation for the AI era, production constraints among existing suppliers are also continuing. Additionally, the short-term increase in production by CXMT is being limited, which will further strengthen short-term supply-demand stability in the general-purpose market."

Expectations for new AI-related products were also cited as a reason. Ryu analyzed, "Demand for new products that can contribute to the evolution of AI technology will remain solid in 2026. In the case of HBM4, the supply-demand environment will remain tight despite production constraints. While the initial price may fall short of expectations, there will be ample opportunities for average selling price (ASP) growth."

He elaborated, "Expansion of the customer base and attempts at custom semiconductors amid production constraints will drive ASP growth. The timing for the adoption of SO-CAMM, a next-generation standard, is also increasingly likely to come sooner than previously expected."