Morgan Stanley and Domestic Brokerages Downgrade Samsung, SK Hynix on Semiconductor Growth Concerns

According to Morgan Stanley and domestic brokerages, Samsung Electronics and SK Hynix faced downgrade in growth outlooks in recent weeks as concerns about earnings deceleration mounted. On July 10, SK Group Chairman Choi Tae-won disputed bubble narratives, stating AI is "still only 5 years old" and memory chip demand will expand exponentially. Kiwoom Securities lowered Samsung's target price to 390,000 won from 430,000 won, citing slower earnings per share (EPS) growth in the second half. BNK Investment Securities maintained SK Hynix at "hold" with a 1.85 million won target, citing uncertainty over big tech hyperscaler capital expenditure expansion. Morgan Stanley recommended reducing memory chip exposure, citing slowing upward earnings revisions as a key factor.
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