Samsung Electronics and SK Hynix stocks rebounded sharply on July 3rd following prior-day declines driven by semiconductor demand concerns. Samsung closed at 309,500 won, up 8.22%, while SK Hynix surged 10.88% to 2,425,000 won, recovering from July 2nd drops of 9% and over 14% respectively. The rebound followed market reassessment of Meta's AI infrastructure strategy, which brokerages characterized as capacity monetization rather than investment reduction. Samsung is scheduled to release Q2 preliminary earnings on July 7th, with analyst consensus forecasting 85.1 trillion won in operating profit. Both stocks face key catalysts this month: Samsung's earnings disclosure and SK Hynix's Nasdaq ADR listing on July 10th (local time).
Samsung Electronics and SK Hynix Post Double-Digit Gains on July 3rd
According to Hankyung Epic AI data on July 4th, Samsung Electronics finished trading at 309,500 won on July 3rd, an 8.22% increase from the previous session. SK Hynix closed at 2,425,000 won, jumping 10.88%. On July 2nd, both stocks had plummeted amid peak-out concerns and AI bubble fears — Samsung fell 9% and Hynix dropped over 14% in a single day.
Market sentiment shifted after Meta's AI data center capacity strategy was reinterpreted by analysts. Brokerages stated Meta's approach represents reinvestment of AI infrastructure revenue rather than investment reduction, countering supply glut concerns. Japan's Kioxia, a NAND flash manufacturer, also rebounded sharply after intraday losses exceeded 11%, supporting semiconductor sector recovery.
Samsung's weekly low reached 281,500 won between late last month and July 3rd, representing an 8.84% decline. The stock regained the 300,000 won level with its July 3rd surge. SK Hynix had climbed to a weekly high of 2,764,000 won on the 19th of last month but corrected to 2,045,000 won by the July 3rd weekly close before the single-day rebound.
Samsung Q2 Operating Profit Consensus Reaches 85.1 Trillion Won
Samsung Electronics will announce Q2 preliminary earnings on July 7th. The brokerage consensus for Q2 operating profit stands at 85.1 trillion won, up 1,720.3% year-over-year. Revenue consensus is 172.1 trillion won, a 130.8% increase from the prior-year period.
Q2 operating profit estimates range from around 80 trillion won to over 90 trillion won depending on provisions treatment. Brokerages agree short-term figure variations do not indicate memory market deterioration. Both DRAM and NAND performance is driven by average selling price (ASP) increases rather than shipment volume growth, suggesting price uptrends may continue in the second half.
NH Investment & Securities forecasts SK Hynix Q2 revenue of 85.3 trillion won and operating profit of 66.2 trillion won. SK Hynix is scheduled to release Q2 preliminary results on the 29th. The company's Nasdaq ADR listing is set for July 10th (local time), which analysts cite as a factor for overseas investor access expansion.
Investor deposit balances, a proxy for market liquidity, fell below 120 trillion won for the first time in approximately two and a half months. Individual investors actively bought the dip using leveraged products during recent declines, but reduced buying power may limit rebound momentum for large-cap semiconductor stocks.
Brokerages Raise Target Prices to 590,000 Won and 4.2 Million Won
Korea Investment & Securities raised its Samsung Electronics target price to 590,000 won, citing sustained high-bandwidth memory (HBM) competitiveness and ASP advantages. The firm expects HBM market share expansion to drive revenue growth alongside higher ASPs versus competitors.
KB Securities increased its SK Hynix target from 3.8 million won to 4.2 million won, reflecting higher memory price appreciation forecasts. The brokerage raised 2024 and 2025 operating profit estimates to 290 trillion won and 468 trillion won respectively.
Lee Chang-min, KB Securities researcher, stated: "Memory demand has increased 100-fold since 2022 and is projected to grow another 100-fold over the next five years. Memory semiconductors' share of AI investment is estimated to surge from 14% in last year to 50% by 2027, indicating SK Hynix's earnings and stock price uptrend has not concluded."
Lee Jae-won, Yuanta Securities researcher, said: "This correction reflects valuation decline from noise rather than fundamental deterioration. A low-price buying strategy centered on semiconductors, IT hardware, and financials remains effective while monitoring Samsung's July 7th preliminary results and SK Hynix's July 10th Nasdaq listing."
Market focus for Samsung centers on whether the stock can stabilize above 300,000 won. For SK Hynix, maintaining the 2.4 million won level is key. Institutional and foreign investors may engage in portfolio rebalancing sales as prices rise to maintain position limits.
FAQ
What caused Samsung Electronics and SK Hynix stocks to rebound on July 3rd?
Both stocks rebounded after brokerages reinterpreted Meta's AI infrastructure strategy as capacity monetization rather than investment cuts, easing semiconductor supply glut concerns. Samsung rose 8.22% to 309,500 won and SK Hynix gained 10.88% to 2,425,000 won, recovering from July 2nd declines of 9% and over 14% respectively.
When will Samsung Electronics announce Q2 earnings?
Samsung is scheduled to release Q2 preliminary earnings on July 7th. Analyst consensus forecasts 85.1 trillion won in operating profit, up 1,720.3% year-over-year, with revenue consensus at 172.1 trillion won.
What are the target prices brokerages set for Samsung and SK Hynix?
Korea Investment & Securities raised Samsung's target to 590,000 won based on HBM competitiveness. KB Securities increased SK Hynix's target from 3.8 million won to 4.2 million won, citing memory price increases and raising 2024-2025 operating profit estimates to 290 trillion won and 468 trillion won.
