Despite severe fluctuations in the Korea Composite Stock Price Index, brokerage firms are still increasing the layout of Korean memory chip stocks, betting that the AI-driven storage market still has a lot of room to rise. In a research report released on Monday, Nomura Securities maintained a judgment that favors memory chips, predicts that the supply bottleneck will continue until at least 2028, and lists Samsung Electronics and SK Hynix as the preferred targets. The brokerage firm reiterated the “buy” rating and gave Samsung Electronics' target price of 670,000 won and SK Hynix's target price of 4.7 million won; compared to Wednesday's current prices of about 220,000 won and 1.28 million won, the target price is more than three times the current price. Nomura believes that the market is overreacting and there is no need to worry too much. J.P. Morgan also remained optimistic earlier this month, maintaining an overrated rating on Korean stocks. The US investment bank expects that AI-related individual stocks will continue to drive the rise in the Asian market next year, continuing this year's upward trend. Local Korean brokerage firms also share the same view. They believe that stable AI demand is weakening the traditional boom and bust cycle characteristics of the storage industry. Han Dong-hee, an analyst at SK Securities, said, “The logic of storage requirements in the AI era is different from what it used to be.” “In the past, storage demand was driven by mature industries such as PCs and mobile phones, and was very cyclical. After AI became a new source of demand, the industry's sensitivity to economic cycles declined drastically.”

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