KOSPI Breaks Through 7,000 Intraday… Is a Revaluation of Samsung and SK hynix Beginning?

The KOSPI surged for a fifth consecutive day, breaking through the 7,000-point mark during intraday trading. This was driven by the strong performance of U.S. semiconductor stocks, which spilled over into the domestic market. Furthermore, the growing analysis that Samsung Electronics and SK hynix are extremely undervalued is fueling expectations of a stock price revaluation.

On the 14th, the status of the domestic stock market was displayed on the electronic board in the dealing room of Hana Bank in Jung-gu, Seoul, as the KOSPI index recovered the 7,000-point level in early trading amid the strength of US technology stocks. It marks the first time in 15 trading days since the 24th of last month that the KOSPI index surpassed the 7,000-point level during the session. Photo by Kang Jin-hyung

View original image

On the 14th, the KOSPI opened at 6,995.67, up 2.68% from the previous trading day, and as of 9:50 a.m., it was trading at 6,937.95, a gain of 1.83%. The KOSPI even climbed as high as 7,010.86 in early trading—the first time it has surpassed the 7,000 level during the session in 15 trading days since the 24th of last month. At the same time, the KOSDAQ was trading at 860.30, down 0.12%. Shares of Samsung Electronics and SK hynix rose 0.75% and 5.34%, respectively.

Overnight, Wall Street climbed across the board as July’s producer price index (PPI) growth slowed. The S&P 500 closed at 7,798.99, up 50.49 points (0.65%) from the previous session, setting a new all-time high on a closing basis. The Dow Jones Industrial Average ended at 53,839.99, up 69.72 points (0.13%), while the tech-heavy Nasdaq Composite finished at 26,803.03, up 214.54 points (0.81%).

Semiconductor companies in particular led the gains. Memory chipmaker SanDisk soared 13.7%. During its Investor Day event, SanDisk projected that its sales for fiscal years 2028 to 2030 would grow at a mid-to-high teen percentage annually, driven by robust demand from AI infrastructure expansion. Micron Technology and SK hynix’s American Depositary Receipts (ADRs) also rose by 4.23% and 7.29%, respectively.

Currently, Samsung Electronics and SK hynix have entered the undervalued zone. According to KB Securities, the estimated operating profit for the two companies next year is 575 trillion won for Samsung Electronics and 389 trillion won for SK hynix. Nevertheless, as of the close on the 12th, the price-earnings ratios (PER) were only 3.7x and 3.2x, respectively.

The undervaluation is even more extreme compared to global competitors. The combined operating profit estimates for the two Korean companies (641 trillion won) is five times that of Taiwan’s TSMC (139 trillion won), yet the market capitalization is at a similar level. Micron also has a market capitalization that is 26% higher than SK hynix, although SK hynix’s operating profit is twice that of Micron.

Kim Dongwon, researcher at KB Securities, said, “The new shareholder return policies to be announced soon by Samsung Electronics and SK hynix are expected to lead to a valuation re-rating and stock price appreciation, much like the case of TSMC,” adding, “As the mid- to long-term supply-demand foundation is further strengthened, the valuation re-evaluation is anticipated to gain momentum.”

© The Asia Business Daily. All rights reserved. Unauthorized AI training and use prohibited.