Optimistic forecasts have emerged for Korean wireless telecommunications equipment stocks ahead of the U.S. spectrum auction scheduled for June. Kim Hong-sik, an analyst at Hana Securities, recommended increasing exposure to Korean wireless telecommunications equipment stocks in a recent report titled "Buy Korean Wireless Telecommunications Equipment Stocks Before June."
"Even if share prices reflect the outlook early, Korean wireless telecommunications equipment stocks are expected to rise at least through the first half of 2028," Kim said. "Considering the recent gains, the 2025-2028 rally in Korean wireless telecommunications equipment stocks is likely to be longer and larger than the 2018-2020 rally."
Kim noted that as the main U.S. spectrum auction begins in June, Korea's AI RAN business is also expected to take shape after late June. "Telecom equipment stock prices typically follow a pattern of rising after regulators establish policies, after telecom carriers announce investment plans, and after vendors are selected," he explained. "After the June U.S. spectrum auction, the disclosure of carriers that win spectrum and the selection of U.S. carrier suppliers in the third quarter are highly likely, drawing investor attention more than ever," he said. "Major Korean wireless telecommunications companies expected to be chosen as suppliers are likely to see strong share price gains." He added, "The quiet Korean telecom market is also expected to see heightened expectations for wireless investment as the AI RAN business gets underway."
"Ericsson, Samsung Electronics, and Fujitsu will benefit, so a strategy of investing in Korean outsourcing wireless telecommunications equipment companies likely to receive supply orders is promising," Kim said.
Kim dismissed concerns about a peak in telecom equipment stocks as premature. "This wireless telecommunications investment is a network investment for the success of physical AI, representing a four-year long-term big cycle starting with the construction of a 'pure 5G network' in 2027 and extending to the commercialization of 6G by 2030," he said, adding that there is still ample upside.
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