TS Lombard Favors Taiwan, Japan Over South Korea as 55%-70% of Memory Growth Hinges on Prices
Updated
Updated · Business Insider · Jul 22
TS Lombard Favors Taiwan, Japan Over South Korea as 55%-70% of Memory Growth Hinges on Prices
1 articles · Updated · Business Insider · Jul 22
Summary
TS Lombard kept a neutral stance on South Korean equities and said Taiwan and Japan offer more durable AI exposure, even as it stays positive on overall AI capital spending.
55%-70% of 2026 revenue growth at Samsung memory, SK Hynix and Micron is expected to come from pricing, versus 15%-25% at TSMC and Japanese chip-equipment makers, making Korea more vulnerable as memory price gains ease.
Chinese capacity expansion, higher US interest rates and the risk of a retail-driven leverage unwind in South Korea could further limit upside, the analysts said.
Samsung and SK Hynix now look "fair" after a correction—Samsung is down 30% from its recent peak and SK Hynix about 40%—while the Kospi remains this year's best-performing major benchmark despite sitting 28% below last month's record.