Samsung Electronics vs SK Hynix: Is It Still a Good Time to Buy Semiconductor Stocks?
With the recent improvement in the semiconductor industry, stock prices for Samsung Electronics and SK Hynix have risen significantly. Is it too late to jump in now? I hear that demand for AI semiconductors will continue to grow, but I'm concerned there might be a short-term correction. I'd like to hear opinions from experts. For reference, I'm focused on long-term investing.
7 answers
For long-term investors, now isn't a bad time. AI semiconductor demand is structurally growing, so short-term corrections could actually be buying opportunities. I don't think Samsung Electronics and SK Hynix are particularly overvalued.
I had a similar concern. In the end, semiconductors have cycles, so if you buy when things are as good as now, your mentality tends to waver when a correction comes. It might be safer to wait a bit and then buy in installments.
Samsung has a lot of catching up to do in HBM, while SK Hynix is already leading and its stock has risen further. In the long term, both are fine, but right now it feels like a short-term peak, so I'm also torn. By any chance, how are you setting your target allocation?
I'm not an expert, but I had a similar experience last year when I jumped in at a similar timing and got caught in a correction. It's fine if you're in it for the long term, but if you don't have the psychological leeway, I'd recommend dollar-cost averaging. Right now, it feels like people are getting too hyped up by the news.
AI demand is definitely growing, but short-term profit-taking sell-offs could emerge. I personally prefer Samsung Electronics, as its PBR is low and it has shareholder return policies, which might limit downside. Just for your reference!
I'm increasing my position in SK Hynix. Their partnership with NVIDIA is solid, and they clearly have a competitive edge in HBM3E, so it should be more advantageous in the long run. However, rather than buying all at once now, a strategy of buying on each dip seems better.
Semiconductors are a cyclical industry, and some say we're at the peak of the current cycle. For long-term investment, buying now isn't bad, but keep in mind that a correction could come within 1-2 years, so consider your cash allocation. I'm putting in only half and waiting.