- After a significant rise in the first half of the year, the Asian semiconductor sector is experiencing valuation correction pressure. Samsung Electronics' strong second-quarter performance guidance failed to trigger a sustained rebound, indicating that the market has fully priced in the positive expectations.
- Investors are shifting their focus from the immediate growth in AI demand to the sustainability of future profit growth. High valuations have led some bullish funds to take profits, and market risk appetite is marginally deteriorating.
- The selling pressure on chip stocks is spreading across regions, with South Korea and Japan's related industry chains experiencing the largest declines. The rapid retreat of bargain hunting reflects the market's cautious outlook on the earnings season.
Samsung's Bright Guidance Fails to Mask Valuation Reassessment Pressure
Samsung Electronics (KS:005930) released a second-quarter operating profit forecast that surged 19 times year-on-year, yet its stock price fell 6.25% after a brief rebound. Mizuho Securities analysis indicates that the strong absolute data did not significantly exceed Wall Street's already heightened expectations, triggering a market valuation correction. This reflects funds choosing to close long positions after earnings are realized, as the market begins to scrutinize the premium rationality of high-valuation sectors at current profit levels.
South Korean Semiconductor Sector Faces Capital Outflow
Dragged down by Samsung's performance failing to exceed expectations, the selling pressure on South Korea's high-tech sector intensified. Competitor SK Hynix (KS:000660) gave back nearly 6% of its early gains, closing down 5.68%, while LG Innotek (KS:011070) also fell more than 6%. The Korea Composite Stock Price Index (KS11) was heavily impacted, plunging 5.35% to close at 7,246.79 points. The sharp decline in data indicates a rise in short-term risk aversion, with institutional funds accelerating their withdrawal from high-tech stocks at high levels.
Supply Chain Sell-off Effect Spreads to Japanese Market
The adjustment in the memory chip sector has triggered a chain reaction in the Asian semiconductor supply chain, with major Japanese chip suppliers giving back early gains. Murata Manufacturing (TYO:6981) closed down about 2%, and leading electronic component maker TDK also recorded a nearly 2% decline. This cross-regional sector divergence and simultaneous decline indicate investors' doubts about the short-term capital expenditure growth rate of the entire AI hardware supply chain, with risk appetite turning cautious.
Taiwan Market Shows Resilience but Rebound Momentum Limited
Compared to the sharp adjustments in the South Korean and Japanese markets, the Taiwanese semiconductor sector showed relative resilience. The Taiwan Weighted Index rose slightly by 0.6%, with Nvidia's key supply chain partner Hon Hai Precision (TW:2317) managing to hold onto a 0.2% gain after narrowing its late-session gains. Although some bargain hunting is building a base in key weighted stocks, the rapid exhaustion of overall rebound momentum suggests that the market remains broadly cautious about the sustainability of profit growth in the upcoming earnings season.
