"The semiconductor supercycle has only just begun."
Nomura, the global investment bank that raised its KOSPI target to 10,000-11,000 points late last month, said the semiconductor supercycle is still in its early stages.
Chung Chang-won, co-head of Nomura's Asia research, made the remarks Friday at the "2026 Korea Economy and Stock Market Media Briefing" held at the Seoul Finance Center in Jung-gu, Seoul. "What matters is valuation," he said.
"This year, monthly memory revenue has been rising vertically," Chung said, stressing that "this is a pattern never seen before." He emphasized that "considering this, this semiconductor supercycle is only at the very beginning." Chung also expressed optimism, saying, "AI-driven memory demand is expected to grow 10,000 to 20,000 times over five years," adding that "we are heading toward a new world we have never heard of before."
Nomura Securities raised its KOSPI target to 10,000-11,000 on Nov. 20. It set target prices of 590,000 won for Samsung Electronics (005930.KS) and 4 million won for SK hynix (000660.KS).
Regarding concerns recently raised in some quarters about a slowdown in Big Tech artificial intelligence (AI) investment, Chung asserted, "Concerns about a shortage of investment funds already disappeared from the market at the end of March," adding, "Investment is now being made on the belief that memory demand will continue." He named Samsung Electronics, SK hynix, Kia (000270.KS), and Samsung SDI as his top picks.
The KOSPI rose back above the 8,000 level that day. According to the Korea Exchange (KRX), the KOSPI closed at 8,123.62, up 359.67 points (4.63%) from the previous trading session, while the KOSDAQ ended at 1,029.05, up 32.12 points (3.22%). The recovery of the KOSPI's 8,000 level was led by foreign investors, who made net purchases of 1.1958 trillion won, and institutions, which bought 1.2447 trillion won worth that day. In particular, foreign investors, who turned net buyers for the first time in 25 trading sessions since Nov. 7, net purchased 1.2882 trillion won worth of SK hynix that day. They also bought 882.9 billion won worth of Samsung Electronics.
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