I’m paying much closer attention to Korea this year because the setup feels very different from past chip cycles. AI-driven HBM shortages, multi-year supply lock-ins, and the “Korea discount” unwinding are creating both earnings growth and valuation expansion together. Even after the rally, Samsung and SK Hynix still don’t look expensive to me at around 5-6x forward earnings while sitting at the center of the AI infrastructure boom.
Personally, I prefer a mix of direct semiconductor exposure & $iShares MSCI South Korea ETF(EWY)exposure. SK Hynix has the strongest HBM positioning, but Korea as a whole may still be in the early stages of rerating compared with expensive US AI names.
My biggest concern is not AI demand slowing, but expectations getting too far ahead. If capacity expands too aggressively into 2027-2028, the market could start pricing in oversupply risks. But for now, earnings momentum and pricing power still look very strong.
@TigerClub @TigerStars @Tiger_comments
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