JPMorgan Says Memory Stock Pullback Offers Buying Opportunity, Samsung Electronics and SK Hynix Listed as Core Overweight Picks

BlockBeats news, October 15: JPMorgan's Asia-Pacific equity research team stated that South Korea's third-quarter earnings season will kick off in the week of October 19, and the recent sharp pullback in memory chip stocks is creating a medium-term buying opportunity. The bank called the current phase a "reset quarter for expectations" for memory stocks, arguing that there is a perception gap between market concerns over the sustainability of AI spending and the supply-demand fundamentals of memory chips, and that the emotional overshoot provides a favorable risk-reward window for betting on a "longer and higher" upcycle in the memory industry.

JPMorgan data shows that memory stocks fell about 6% and 15% over the past one month and three months, respectively, while the Philadelphia Semiconductor Index rose about 10% and fell about 4% over the same periods. The bank's core overweight names for the next six months include Samsung Electronics, SK Hynix, Kioxia, Samsung Electro-Mechanics, ISU, and ISC, covering memory chips and the related supporting supply chain.

JPMorgan views the earnings season starting October 19 as a key validation window, with focus on corporate earnings performance, memory spot prices, AI-related orders, and changes in capital expenditure. If memory supply and demand continue to weaken, catalysts remain delayed, or corporate earnings are broadly revised down, the bank will reassess the above judgment.