On the 3rd, Samsung Electronics(005930) and SK hynix(000660) are falling together. After surging as they traded near the upper limit of the daily price band in the previous session, profit-taking appears to be emerging today.

On the 3rd, the KOSPI, which posted a record-setting surge in the previous transaction day, opens down more than 3% as an employee works in the dealing room at Hana Bank in Jung-gu, Seoul. /Courtesy of Yonhap News.

As of 9:38 a.m. that day, Samsung Electronics is trading on the main bourse at 243,500 won, down 19,000 won (7.24%) from the previous session. At the same time, SK hynix is also trading at 1,599,000 won, down 119,000 won (6.93%) from the previous session.

The surge in the two stocks in the previous session appears to have prompted profit-taking. Samsung Electronics jumped 29% at the close on the 31st. SK hynix closed at the upper limit.

Brokerages say Samsung Electronics' share price has entered an undervalued range. Seo Seung-yeon, an analyst at DB Securities, said, "Unlike past cycles, a stable memory business structure is expected through long-term agreements (LTA) for memory supply," adding, "Amid recent doubts about big techs' ability to recoup investments in artificial intelligence (AI), the stock has fallen to about 1.1 times the expected 2027 P/B, making it a valid buy-the-dip range."

There is also an outlook that SK hynix will continue to improve earnings in the third quarter. Noh Keun-chang, an analyst at Hyundai Motor Securities, said, "Second-quarter DRAM shipment volume (bit growth) fell short of market expectations," but projected that "from the third quarter, as HBM4 is fully reflected in revenue, earnings improvement will accelerate."

Noh projected third-quarter revenue and operating profit would reach 103.6 trillion won and 79 trillion won, respectively. Backed by expanding HBM4 sales, the average selling price (ASP) of DRAM is expected to rise about 20% from the previous quarter.

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