BlockBeats News, July 17th - Kim Sunwoo, a researcher at Meritz Securities in South Korea, stated that the market has a significant misunderstanding of the fundamentals of Samsung Electronics and SK Hynix. He believes that the current evaluation of the semiconductor sector should not be based on fragmented information and a short-sighted, pessimistic outlook.

Addressing the rumors about SK Hynix signing long-term supply agreements with large tech companies by offering discounts, Kim Sunwoo clarified that the arrangement is not merely a price sacrifice but a strategic investment to secure early demand in the AI-driven and AI data center markets. The company is expanding its medium- to long-term customer base through joint ventures and partnerships.

He expects the DRAM supply-demand ratio in the latter half of this year to be only 75% to 80%, possibly dropping further to the 60% range next year. Even considering only genuine end demand, the supply-demand ratio is expected to be around 70%, deepening the supply shortage.

Kim Sunwoo believes that Samsung Electronics' share buybacks, cancellations, and dividends, as well as the potential special dividends from SK Hynix, will help alleviate market concerns. He also stated that both companies are currently in a phase of significant undervaluation and overcorrection.