Rising 70,000-Won Electronics: 'Excited Ants' VS 50,000-Won Electronics Returning? 'Regretful Ants'

[Asia Economy Reporter Lee Seon-ae] As Samsung Electronics' stock price has been on the rise recently, expectations are forming that it could once again reach the 70,000 KRW level. While investors' interest is focused on the '70,000 Electronics,' many excited individual investors are active on stock communities, though some express regret. They lament not being able to buy when the price fell to the 50,000 KRW level, unable to overcome the 'fear' at that time.

According to the Korea Exchange on the 23rd, Samsung Electronics closed trading at 61,300 KRW, down 0.81% from the previous day.

Since the beginning of the year, Samsung Electronics has shown a downward trend due to tightening policies, geopolitical risks between Russia and Ukraine causing raw material price increases, and other factors. Although it exceeded 78,000 KRW at the end of last year, it gradually declined and recorded an intraday low of 55,700 KRW on the 4th of this month. However, it began to rebound from mid-month. On the 15th, it rose 4.35%, recovering the 60,000 KRW level and rejoining the '60,000 Electronics' ranks. It has maintained this level steadily since then.

The positive impact on Samsung Electronics' stock price is attributed to the upward revision of earnings by Taiwan's TSMC, the leading foundry (semiconductor contract manufacturing) company. This represents the highest quarterly sales ever. Additionally, TSMC provided a sales guidance of $19.8 to $20.6 billion for the third quarter of this year, exceeding the sales forecast of $19.4 billion.

As concerns over the semiconductor industry improved, the perception of Samsung Electronics being oversold increased, and foreign investors began buying, adding momentum to the upward trend. Kim Jang-yeol, a researcher at Sangsangin Securities, stated, "The relative low price perception of Samsung Electronics and SK Hynix stocks, which had been excessively sold off, seems to have led to net buying of representative cyclical stocks. We believe the semiconductor stocks have passed their previous lows."

Samsung Electronics' earnings may face difficulties for a while due to falling prices of semiconductors such as DRAM, but if additional signs of industry recovery appear, expectations are growing that the stock price could rise to the 70,000 KRW level again. The financial investment industry analyzes that if client companies' inventory adjustments stop in the first half of next year, the stock price could recover with increased gains within the year.

In particular, KB Securities evaluated that Samsung Electronics' stock price has already passed its bottom and that the lows will rise toward the end of the year. Researcher Kim Dong-won said, "The global set manufacturers' inventory adjustments, which began in earnest from the third quarter, will be concluded in the first half of next year," and added, "From the second half of next year, a gradual supply-demand improvement in the memory semiconductor market is expected." He continued, "From a long-term investor's perspective, the excessive decline in Samsung Electronics' stock price will stand out as an attractive level," and "Considering the six-month price lead of semiconductor stocks, Samsung Electronics' stock price is expected to gradually raise its lows toward the end of the year."

This content was produced with the assistance of AI translation services.