SK hynix (000660.KS) surged in early trading on January 29 after being removed from the investment warning list, while Samsung Electronics (005930.KS) hit a new 52-week high, driving broad strength across major semiconductor stocks.
As of 9:25 a.m. on January 29, Samsung Electronics was trading at 119,500 won on the Korea Exchange, up 2,500 won (2.14%) from the previous session. The stock reached as high as 119,700 won during the session, setting a new 52-week high.
SK hynix also posted significant gains following the removal of its investment warning designation. At the same time, SK hynix was trading at 630,500 won, up 31,500 won (5.26%) from the previous day. Buying interest flowed in from pre-market trading, sustaining the upward momentum.
The gains reflect expectations for normalized trading flows following regulatory changes. The Korea Exchange's Market Oversight Commission revised its market surveillance rules effective the same day, exempting stocks ranked in the top 100 by combined KOSPI and KOSDAQ market capitalization from investment warning designation. SK hynix had been placed on the investment warning list because its share price had surged more than 200% over the past year. However, as major large-cap stocks and market leaders were successively subjected to regulations this year, market participants persistently argued that "mechanically regulating even large blue-chip stocks is excessive."
Securities analysts maintain a favorable outlook on SK hynix's medium- to long-term earnings prospects. NH Investment & Securities raised its target price to 880,000 won in a report released the same day, noting that SK hynix's earnings improvement is progressing faster than expected. "Based on its technology-driven high-performance memory, SK hynix is establishing itself as a differentiated global No. 1 memory company compared to competitors," said Ryu Myung-ho, an analyst at NH Investment & Securities. "Competitiveness in High Bandwidth Memory (HBM) and enterprise SSDs (eSSD), which are core AI components, is driving a re-rating across the memory industry."
Analysts are also raising their expectations for Samsung Electronics. Hyundai Motor Securities raised its target price from 129,000 won to 143,000 won in a company analysis report released the same day. "Operating profit at the DS (Device Solutions) division is expected to exceed our previous forecast by 21.8%," said Noh Keun-chang, head of research at Hyundai Motor Securities. "The sharp rise in DRAM prices is working favorably in HBM3e price negotiations."
NH Investment & Securities also raised its target price for Samsung Electronics from 145,000 won to 155,000 won the same day, citing simultaneous improvements in foundry and system semiconductor (LSI) performance alongside tailwinds in the memory market.
