Samsung Electronics and SK Hynix Called “Extremely Undervalued” as Kospi Rebounds

TLDR

• South Korea’s Kospi has risen more than 22% from its July 30 low, crossing into bull market territory
• Samsung Electronics and SK Hynix each jumped more than 5% on Thursday, leading the benchmark higher
• KB Securities analyst Jeff Kim says both stocks are “extremely undervalued” after falling more than 40% from their peaks
• Strong AI spending from Big Tech firms has restored confidence in memory chip demand
• Foreign investors remain net sellers, having pulled more than $100 billion from Korean shares this year

Samsung Electronics and SK Hynix have surged back into focus after a brutal July selloff, with one analyst calling both stocks “extremely undervalued” as South Korea’s main stock index entered bull market territory.

Samsung Electronics Co., Ltd., SMSD.L

South Korea’s Kospi rose as much as 4.8% on Thursday, bringing its total gain from a July 30 low to around 22%. That crosses the threshold commonly used to define a bull market.

The recovery has been fast. Just last month, the Kospi fell 22% in its worst monthly performance since the global financial crisis. The drop was caused by forced liquidations of leveraged bets on chipmaker stocks.

… Continue reading the full article at the original source below.